Despite a stark drop in quarterly profits, Mosaic is saying potash demand is improving. The company claims to have sold more potash in one day last week than in all of January, reported Businessweek.com.
Jim Prokopanko, chief executive officer of Mosaic, told Businessweek.com that the turnaround in demand is due to demand strengthening in Brazil after drought lowered soybean yield and increased prices.
Businessweek.com reported that total potash sales volume will be 1.7 million to 2.2 million tons in the current fiscal fourth quarter, up from 1.1 million in the third quarter. Phosphate sales will be 2.3 million to 2.7 million tons, compared with 2.6 million tons in the previous quarter.
Another market potash demand is strengthening is in India, according to Mosaic. India is Mosaic’s largest export market. Demand is expected to hold in India even though the government is lowering subsidies for phosphate and potash fertilizers. Prokopanko said the strengthening rupee is increasing India’s farmer purchasing power and fertilizer prices are coming down.
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