Long-term crop nutrient outlook good as uncertainties continue
Waiting on China’s Potash Contract
Mosaic also announced this week that China may not sign its potash supply agreement with North America’s largest potash producers until next year. China appears to be holding out for lower prices than the ones paid in the first half.
China is “very determined” to pay less than the $470 a ton it negotiated for the first six months of 2012, Prokopanko said. The standoff is being exacerbated by the country increasing its rail imports from Belarus.
Prokopanko said China could wait through the rest of 2012 without purchasing more potash. They may even wait as long as into the first of 2013.
In the meantime, India is not expected to sign its potash supply agreement with North American producers until China settles its contract first. Imports into India have been cut due to a weaker rupee and budget cuts.