Potash supplies in North America at the producer level continued to swell in October, according to PotashCorp. The increase in producer-level inventories indicates the lackluster demand in key global markets.
It was reported that stockpiles of potash, also known as potassium chloride, increased 7.2 percent to 2.5 million tonnes, according to data posted by PotashCorp.
This level of potash at the producer level is 43 percent above the previous five-year average as prices have dropped to $470 per tonne.
Supplies are swelling due to China and India delaying signing new supply contracts with Canpotex, the potash marketing company owned by PotashCorp, Agrium and Mosaic Company.
Plans to temporarily close mines are expected to happen. PotashCorp mines slated for temporary shutdowns included its Allan, Saskatchewan mine, Sussex, Lanigan and Rocanville.