GREY:MAAFF - Post by User
Comment by
canadianpilgrimon May 31, 2009 10:09am
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Post# 16030884
RE: Question for the board !
RE: Question for the board !The price of the potash players went way up recently when the price of soybeans crashed upwards through resistance. The price of potash itself is quite sticky due to the cartel nature of the present producers. The agricultural commodities affect the price of the potash producers. The price of soybeans affects the price of corn which really affects the value of MAA.
As already mentioned, the rise in the price of grain will get farmers to borrow the money for the fertilizer which they have been delaying. There are some pretty scary predictions for the next 12 months of grain harvests due to the decline in fertilizer useage. Some countries will experience 10%+ declines. This will jack up grain prices and production next year since stockpiles are really low. The price of potash is going back up in big way, it's just a question of when.