Potash Corp closing in on China contract

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

After releasing disappointing third-quarter results last week, Potash Corp announced it expected to ink a sales contract with China before the end of the year. However, its contract with India remains uncertain.

Bill Doyle, Potash Corp’s chief executive, told investors last week that negotiations with China are “constructive and ongoing” and he expects shipments to resume by the end of the year. He said the country has met its recent potash needs through a mix of domestic production, inventory withdrawals and rail deliveries, but that it cannot rely solely on these sources for very long.

“Importantly, we believe the draw on China’s inventories should lead to increase sales volumes to his market in 2013,” he said.

Despite the movement with the Chinese contract, India’s contract is uncertain as the government continues to support nitrogen over potash. Doyle told investors that this position has created significant price distortions in the market as farmers apply too much nitrogen and not enough potash, which is damaging the country’s crop nutrition.

In other regions of the world, Doyle remained bullish. He noted that the United States and Latin American potash shipments were very strong and that high crop prices were motivating farmers to increase their fertilizer applications.

Despite Doyle’s bullish comments, the market is slow. Last week Potash Corp announced plans to shutter Rocanville and Lanigan mines in Saskatchewan for eight weeks to better balance supply and demand.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Aluminum Grain Trailers

Maurer Manufacturing offers a complete line of high quality aluminum grain trailers. Manufactured in Spencer, Iowa, Maurer aluminum grain trailers ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form