2011 And BeyondWhere the price of grain goes...potash price follows close behind...
If you believe that the price of grain and wheat will remain high or maintain current levels, then farmers will continue
to net record prices for their crops and have the income to fertilize their fields with potash year upon year...
There is a growing demand for what potash fertilizes. As long as food competes with ethanol production and we have unseasonal weather disruptions and weather related disasters we will see consistently higher prices for wheat, grain, soy and other potash crops. From what I have read, there appears to be a bright future for a company planning on being one of the first near term producer of potash. The next 12 months is where the rubber meets the road and Allana makes tracks moving forward to production.
I believe that Allana is in a very good place going into 2011 - 2012. We can look forward to management achieving several planned milestones in 2011...
Completion of Phase One and Phase Two Drilling by February
Completion of "NI" 101 Resource Estimate by April - proving over 800 million tons and a 40 year mine life
Completion of Feasibility Study and Report by December
Completion of Equity Financing for 65% of Capex. Either Offtake Ageement or Long Term Credit Facility
Completion of Agreement with ChinaCo. for 35% of Capex Equity Financing
Happy New Years...Allana!
Gods speed...to prosperity
Karma
The Potash Market, in 2010 and Beyond
Wed, Dec 15, 2010
By Leia Michele Toovey
The price of potash is intimately connected to the price of grains. If grain prices are low, there is little incentive for farmers to encourage maximum yields from their land. If grain prices are high, there is great incentive. In 2010, knowing many farmers had skipped their 2009 applications; analysts were bullish on the potash market. Inclement weather in many growing regions, combined with a flourishing Chinese economy enhanced the bullish tone. While 2010 was a year of recovery, the ascent was gradual, with prices currently about half of their 2008 peak. This leads us to question what 2011 will have in store. Will prices rebound further, or will economic jitters cause farmers to skip another potash application? The best way to predict what potash will do is took take a look at the grain market’s fundamentals. forecast from economists at Purdue University, released in November, projects double-digit percentage increases in the variable cost of growing corn, wheat and soybeans next year, with fertilizer the driving force behind the rise. “Crop production around the world, and the demand associated with that, still seems to be the primary driver” behind higher fertilizer prices, Purdue specialist Bruce Erickson said. Higher fertilizer costs are expected to cut into the margins of farmers. U.S. corn futures are up 38 percent from a year ago, while soybean futures have climbed 22 percent. Global supplies for both crops and wheat remain a concern. U.S. farmers spent $44 billion to raise their crops in 2010, with about 41 percent going to fertilizer. USDA estimates average per acre fertilizer expenses for 2010 at $124.26 for corn, $57.32 for wheat and $22.46 for soybeans. As long as the crop prices remain high, there will be a huge incentive to purchase potash.
Good News for Agricultural Commodities
By Brian C. Rezny
- Posted
The bottom line: the weather-related disruptions that occurred this year (and the resulting supply-side shocks) will continue to impact prices to the upside going into next year. And food production will need to increase 70% in order to support a global population of 9 billion by 2050, according to the International Fund for Agricultural Development
| 21:34 UK, 23rd December 2010, by Agrimoney.com |
| Supply fears help wheat price to record in London |
The buying was reflected too in wheat prices in Paris, where the January contract touched a two-year high of E250.00 a tonne, a two-year high and a "big psychological level for many in the market", Mr Nolan said.
The market was finding that, despite the rises in prices of more than 80% in Paris since June, and more than 90% in London, "demand for wheat, and in particular milling quality wheat, has simply not been rationed".