Shares of fertilizer makers Potash of Saskatshewan (POT), and Intrepid Potash (IPI), are jumping today after positive remarks from trade Web site Agriculture.com, which suggest that a recent slump in prices is not likely to last, and urging farmers to buy fertilizer now.
Potash and the rest of the industry have struggled with slumping demand, in the face of which, they have refused to lower prices, believing that demand will bounce back with an economic rebound.
Agriculture.com comments on the International Fertilizer Association's 2009 to 2013 report, which says demand could snap back this year after last year's slump. After a 14% decline in fertilizer consumption overall this year, globally, the IFA predicts a 3.6% rise from this year to next, as farmers regain credit and commodity prices stay high.
Adding to today's enthusiasm, Uralkali, Russia's second-largest potash maker, said today it would raise prices 20% on rising demand for complex fertilizers, Bloomberg reports.
Potash shares today are up $6.37, or 7%, at $97.26, while IPI stock is $1.64, or 6%, at $28.84.
0 comments
Post a Comment