Expect potash prices near $505 per ton in 2012
“For 2012, we expect an average price of $505 per ton and then moving to $520 per ton average price in 2013. The peak price in 2013 should be around $650 per ton, maybe $625 per ton. But, it won't be as high as the $700-725 per ton that I thought may take place when I made that forecast a year ago,” said Richard Kelertas, vice president and senior financial analyst, Dundee Capital Markets, in an interview with The Energy Report at Commodityonline.com.
Kelertas shares his views about how the macro issues happening in Europe are hurting all commodity prices. He expects that the global economic growth that was anticipated to be slow, but gradual through 2014 will slow even further. The slower growth should also impact China and Asia now, he said.
In the climate of the slower economic growth, Kelertas discusses how the debt crisis and slow economic growth will impact agriculture and specifically fertilizer prices.
“Within the next year, we should see some growth return. That will be composed of three components: Farmers will use potash at normal levels and growth will be reflected in shipments and prices. Lands that will be brought back into production will expand demand. This is fallow or abandoned agricultural land throughout the world, especially in Africa, that has been bought up by either investment pools or sovereign wealth funds or specialty farm land managers.”
Read the rest of the interview here.