The Potash fertilizer market seems to be reverting to former cartel structure. I didnt believe that it was possible to rebuild a cartel once broken (and sold half of my holdings). I still doubt it. Yet Morgan Joseph noted that “both distributors and growers are reverting back to their traditional buying habits,” which will in turn push potash prices higher. The firm also said that POT is “the running-away leader in the potash industry with, by far, the largest reserves, and a large program to continuously boosts them.”
In these moments, POT shares are lifting to 125 or about 7%. The trading day is young. Never a dull moment. (Illustration: A mine in Saskatchewan, Canada).
3 comments:
Resources should hold their values as there is no way to make them artificially and the attainable supply nodes have been largely mapped or factored in. Knowledge industries run by rocket scientists by contrast are in a long-term hiatus due to a paucity of marketable discoveries and the activities of copycats. Yes we appear to have come full circle, real estate, gold, king coal and woodlands these will form the basis of wealth. Let us march forward under the banner of the resource barons.
Wasn't POT's peak price more like $240 per share?
Yes, they split it in two. The peak was 120 when a ton of potash was over 1000 $. In those days Mr Doyle's potash cartel ruled the market. The cartel was broken by those Ukrainians morons. (Not all Ucranians are morons, but the idiots who broke a working cartel that was benefiting them). Today potash is about 300 - 400 $/ton. Investors and analysts think that it is its way back. I am not sure.
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