Withering Corn Yield Prospects Has Analysts Calling for Higher Potash Prices, Co. Stock

July 5, 2012 04:22 AM

Mike Walsten

Prospects of higher corn prices due to yield-cutting heat has some analysts raising their price targets on various potash company stocks. In a story published in his blog, Jonathan Mohan cites several such forecasts. He quotes one stock analyst as saying: "...unusually high temperatures strengthen the view that the U.S. Department of Agriculture’s crop forecast is too optimistic, and that lower crop yields will raise grain prices. He estimated that higher grain prices will allow the current potash price of $500 a ton for immediate delivery to turn into the new benchmark price."

He also wrote: "Canada’s PotashCorp, the world’s biggest potash maker, noted that after the flatness in the potash market at the end of 2011 and in the first quarter of this year, distributors have begun acquiring a large quantity of potash in the second quarter. PotashCorp believes that the poor performance of potash sales, relative to its growth trend of 3% annually over the past decade, is temporary. In the next few years the market will return to its long-term trend, the company forecasts."

Click here for the full story:


Back to news


Spell Check

7/5/2012 02:46 PM

  What a joke - With low yields, potash removal and need will be much, much less. Usage will be way down for 2013 as a result.


Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by QTInfo.com
Brought to you by Beyer