With the settlement of the Indian contract with Canpotex and Belarussian Potash Co. (BPC) settled, there is an established international benchmark for potash prices. There is also a North American benchmark now that Potash Corp. cut its domestic pricing, according to Dundee Securities analyst Richard Kelertas.
He expects Agrium Inc. to meet this new pricing level and revised his potash price forecast lower with these better indications on both domestic and overseas prices.
"We have been advising investors to take some short term profits since May," Mr. Kelertas said in a report this week. "However, we now believe that after the overbought period from March to May and the subsequent decline period from the peaks in May to current prices is over. As such, we would advise both short and long-term investors to buy into the fertilizer sector."
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