Strong Consumption Growth Forecast

As farmers work to capitalize on rising crop prices, they are expected to use more nitrogen fertilizer, resulting in a 10-15 percent increase in consumption in 2007. This would reverse the decline of the past two years, when low crop prices and higher input costs negatively impacted consumption.

This should further tighten fundamentals, as inventories are low after imports dropped in 2006.

Source: Fertecon, PotashCorp