Saturday, July 25, 2009

The fertilizer depression is over

Potash (Pot) up 9% on thursday on bullish comments from their CEO. Bloomberg article here.

“The fertilizer depression is over,” Potash Corp. Chief Executive Officer Bill Doyle said on a conference call.

These guys are basically looking forward and seeing firmer prices and increased demand,” James O’Leary, who helps manage about $3 billion including Potash Corp. shares, for Reno, Nevada-based Navellier & Associates, said today in a telephone interview from New York. “The market’s responding to that.”

Doyle confirmed today that Canpotex Ltd., the export arm of North America’s biggest potash producers, agreed to sell supplies of the commodity to India for $460 a ton, less than producers expected.
“This contract breaks the impasse and opens the door to a return of demand around the world,” Doyle said today on a conference call with investors and analysts. “Buyers now have the clarity they need to resume purchasing.”