The potash market was no different than nitrogen and phosphate. Potash prices were depressed due to oversupply. Recently, potash prices have been rising, which explains the supply-demand dynamics.
During Mosaic’s (MOS) earnings call, the company stated that the potash supply and demand environment remains balanced. The company stated that “phosphates and potash markets continue to strengthen, and we believe they will remain firm.” In the above chart, you can see that the demand for potash fertilizers is expected to rise in 2018 to 66.9 million metric tons. The demand is expected to rise to 67 million metric tons–69 million metric tons in 2019.
The supply and demand are expected to remain balanced, which might mean that the market oversupply has been rationed. Given these factors, potash prices might see upward momentum.
Next, we’ll discuss how potash prices (NANR) have fared and the outlook.