RE:Oil going down bullish for potash = more use by farmers What’s in store for 2015?
The fate of potash appears to be intrinsically linked to that of oil. That’s because potash is connected to corn, which in turn is tied to oil. Lower oil prices can negatively impact corn, harming the use and demand of potash.
“Low grain prices, negative farmer sentiment and lower oil prices (negative for corn) are the biggest issues near term,” said Churchill.
He envisions supply and demand staying relatively steady, with prices climbing slightly higher depending on how drastic the shutdowns at Uralkali are.
“The Chinese contract early in the year is a big catalyst, setting the tone for prices — a 10-percebt increase is expected; anything less would be considered a disappointment,” he said.
In terms of company news on the horizon, IC Potash (TSX:ICP) hopes to know by the third quarter of 2015 when work on its potash mine will start. Meanawhile, Potash Ridge expects its feasibility study to take roughly 12 months to complete, and will file its last remaining major permit within that time.