Inside the Outlook for Potash Prices Today
Unlike nitrogen and phosphorus prices, potash prices have had a positive year so far in 2017. Almost all the fertilizer producers in North America (MOO) saw significant increases in their price realizations in 2Q17.
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On a YoY (year-over-year), potash prices have significantly strengthened in 2Q17. Intrepid Potash (IPI) saw its potash price realizations rise 22% YoY in 2Q17, while PotashCorp’s (POT) prices rose 13% YoY, and Agrium’s (AGU) prices rose 8%. Mosaic’s (MOS) potash prices improved by a mere 1% YoY in 2Q17.
According to PotashCorp, this price recovery took place primarily on strong demand, which came from customers who delayed their purchases on the expectation that prices would bottom out. As inventories ran dry, demand picked up—just as we saw with phosphate.
The outlook for potash prices remains positive. PotashCorp expects prices to strengthen in 2H17, as it expects demand to remain strong through the end of the year. PotashCorp also expects affordability for potash fertilizers to remain high, which should continue to support the current strength in demand for the fertilizer.