China’s Sinofert Holdings Limited signed a contract with Canpotex, the marketing company owned by three Canadian potash-producing companies, for 1 million tonnes of potash in first half of 2013.

The deal was reported to be around $400 per tonne, which is $70 less per tonne than the last contract signed in March 2012.

“We are very happy to see this agreement reached and to have it done early in the year,” said PotashCorp spokesperson Bill Johnson. “This agreement will help provide some certainty for the market going forward.”

Sinofert is China’s largest integrated agricultural company and a long-term business partner of Canpotex.

With many global potash contracts waiting to be signed, this new contract is likely to stabilize the global potash market.