This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Potash Prices Steady As Contracts Continue

But despite the short-term trends, Scotiabank Vice President of Economics and commodity market specialist Patricia Mohr remains positive that growing food demand will drive potash prices above US $500/tonne later this year. Concerns of drought in South American soybean and European wheat markets, and the rebound in canola, palm oil, and corn prices - all crops that require significant potash application per hectare planted - have also buoyed Mohr's confidence in rising potash application in North America, Southeast Asia, and Brazil in 2012.

Investing in potash infrastructure

With short-term uncertainty in current potash markets, there is still a strong belief in the long-term outlook. The British Columbia provincial government announced earlier this week that Vancouver's infrastructure needs an additional CA $700 million of investment in order to service the 24 million tonnes of potash expected to flow from Saskatchewan and Alberta by 2020.

Neptune Terminals, a key Asian "gateway" port on Vancouver's North Shore, just finished a CA $49 million upgrade that increased its potash capacity to 11.5 MT/year.

Investment in Canadian mining has grown significantly in the past year, with capital expenditures in the sector hitting CA $16 billion and potash making up $2.9 billion of that total.

Companies like K+S Potash Canada (FWB: SDF) are a big part of this growth. Construction will begin at the company's $3.25 billion Legacy solution potash mine near Bethune, Saskatchewan this  June. The project is the first new potash mine in Saskatchewan in 40 years, and says a lot about the long-term outlook of Canada's - and the world's - potash prospects. K+S is looking to begin production in 2015, and plans to bring 2.86 MT/year of potassium chloride to market by 2023.

Junior mining news

Ethiopian Potash Corp. (TSXV: FED) appears to be in dire straits. After releasing a number of bizarre press releases in recent months, Mackie Research Capital analyst Jaret Anderson has now stated that unless the company drastically alters its current exploration program and spending, it will soon be unable to meet its financial obligations.

 

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,590.21 +233.34 1.34%
S&P 500 2,039.82 +26.93 1.34%
NASDAQ 4,703.61 +59.2980 1.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs