Canpotex Announces Japanese Contract Settlement for Second-Half 2009 Shipments

Canpotex announced today that it has concluded new pricing agreements with Japanese contract customers covering potash shipments for the second half of 2009. The new contract agreements reflect an average delivered price of over $700/mt CFR.

Source: Canpotex

PotashCorp Adds a Further 800,000 Tonnes to Potash Curtailments

PotashCorp today indicated a further reduction in 2009 potash production of 0.8 million tonnes, bringing curtailments this calendar year to 4.7 million tonnes and total curtailments to 5.5 million tonnes since August 2008.

Lagging demand due to an extremely slow US spring season and extended negotiations with offshore buyers are the reasons behind the shutdowns. However, with the world's soils and supply chain nearing depletion after almost a year of deferral, we expect demand to return in second-half 2009 as Brazil approaches its major application season and India and China inevitably return to the market.

This unprecedented period of draw-down throughout the supply chain, coupled with the expectation of lower global crop production and higher crop prices, is expected to lead to an even stronger rebound in 2010.