potash price drop flooding
I dont know if i can believe this $300 per ton price drop. At the end of the day, there is still no new mine and no more tonnage being created. It's two companies joining together and pulling out of the cardel to sell on the market, at there dictatated price. What it does do, is put a lot of pressure on BHP who is suppose to be having there big meeting at the end of July if there are to pursue with construction of Jansen. Unfortunatly any news from a big company in industry just crushes these junior non-producing company's looking for finance. At $300 a ton, the whole industry is done, including PCS, Mosiac, Agrium who just completed and in completions of there expansions. Spend all that money to expand and upgrade, just to take a kick in the pants. K+S, BHP, KRN, WPX, AAA, suffer the most as there non-producing and sensitive to rumours in market.
Ride it out for a month and see where we stand again. Russians!!!
My opinions thou, cheers
Jericho