Fertilizer Markets and Finance

The share price of Potash Corp. (POT) has risen by 14% over the past 30 days. At $43.72, the stock is trading near its 52-week high of $46.16 and offers a solid dividend yield at 3.2%. However, due to the recent rally, the stock valuation appears to have reverted back to the fair range, meaning a buy rating is likely not warranted. My view is based on the following five reasons:

Read more at Seeking Alpha

TORONTO, ONTARIO—(Marketwired - May 22, 2013) - Allana Potash Corp. (TSX:AAA)(OTCQX:ALLRF) (“Allana” or the “Company”) is pleased to announce that the Company has received approval of its Environmental, Social, and Health Impact Assessment (“ESHIA”) from the Ethiopian Environmental Protection Authority (“EPA”) and Ministry of Mines and Energy (the “Ministry”). The…

Read more at Market Wired

MINSK, 21 May (BelTA) – In the first quarter of 2013 Belarus’ exports of potash fertilizers increased by 38.8% over the same period a year ago. The country sold a total of 955,000 tonnes of potash fertilizers in Q1, BelTA from the National Statistics Committee.

The average price was $638 per tonne, a reduction of 15.5%.

Exports to the CIS countries went down by 6.6% to 20.900 tonnes (the average price was $632 per tonne, down by 11.6%). Deliveries to the countries outside the CIS went up by 40.3% to 934,100 tonnes (the average price was $638 per tonne, down 15.6%).

In January-March of 2013, Belarus’ exports of nitrogen fertilizers increased 3.5 times as against the same period last year to 63,047 tonnes. The average price here made up $854 per tonne, up 13.8%. Exports to the CIS countries increased by 89.2% (582 tonnes; the average price at $1517 per tonne, down by 33.7%), to non-CIS countries went up 3.5 times to 62,465 tonnes). The average price for nitrogen fertilizers grew by 17.3% to $847 per tonne.

Mosaic confirmed this week that it has deferred plans to spend $2 billion to expand its potash production capacity by two million tonnes a year at its Belle Plaine mine near Regina and Colonsay mine near Saskatoon.

http://www.leaderpost.com/business/energy/Belle+Plaine+Colonsay+potash+expansions+deferred/8384298/story.html

Company to delay potash expansion by two years due to unfavourable market

http://www.indmin.com/Article/3206044/Mosaic-dismisses-potential-takeover-as-unlikely.html

K+S says demand for the nutrient rose

K+S flagged a sharp increase in world potash demand, even as data showed North American producers of the fertilizer enjoying a record month for exports – counterbalancing signs of weather setbacks to domestic demand.

K+S, the European Union’s top potash group, said that the signing by China and India - the top two potash importers, whose deals set market benchmarks - of fresh orders with North American and Russian producers had sparked the release of pent-up buying pressure.

“Demand for fertilizers rose significantly again in time for the start of the spring season in Europe and North America as well as in South America and South East Asia,” the German-based group said, adding that “prices stabilised”.

Read more at Agrimoney

Mosaic has decided to delay by one or two years expansion of its Saskatchewan potash mines, the company said on Monday. Lawrence Stranghoener, CFO said on a conference call with analysts that the company is deferring the final 2 million m.t./year potash expansion because of unfavorable market conditions and high labor costs. The project was expected to cost “upward of $2 billion.”   “By waiting a year or two, we may see improved labor conditions in Saskatchewan that might help bring down the cost of this project,” Stranghoener said

Read more at Chemical Week

Israel Chemicals (ICL) posted a six percent rise in first quarter net profit, exceeding expectations on strong demand for fertilisers in China.

ICL, the world’s sixth-largest producer of potash, said on Monday its net profit in the quarter rose to $305 million from $289 million a year earlier. Revenue grew nine percent to $1.64 billion. ICL was forecast to earn $286 million on revenue of $1.61 billion, according to a Reuters poll.

Both potash and phosphate fertiliser businesses showed strong growth, with increasing volumes compensating for lower prices, ICL said. About half of its revenue for the quarter derived from products manufactured outside of Israel.

Last month Canada’s Potash Corp , one of the world’s largest potash producers, said it was abandoning efforts to take over ICL because of strong opposition in Israel.

Read more at Reuters

Mosaic Co, the second-largest fertilizer producer in North America, will delay plans to expand potash production in Western Canada due to unfavorable market conditions, a company executive said.

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MINSK, 8 May (BelTA) – Thanks to the efficient work of Belarusian Potash Company, the export of potash fertilizers made by Belaruskali has expanded by 21% up to 1.5 million tonnes in the first quarter of 2013 compared to the same period in 2012, BelTA learnt from Spokesman for Belarusian Potash Company Filipp Gritskov. 

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Planning decision on York Potash Project set for July

Sirius Minerals has updated its shareholders on the planning approval process for its York Potash Project.

As part of its timetable to make a determination on the application, the North York Moors National Park Authority (“NYMNPA”) has prepared an ‘issues report’ for its planning committee. 

The report is a snapshot of the planning considerations and does not account for all of the additional information recently provided to the NYMNPA last month. This information was provided by the company following a range of information requests by the NYMNPA and is currently subject to a re-consultation exercise by the Authority with statutory consultees. 

Read more at StockMarketWire

Israel Chemicals: We transfer to the government NIS 1.5 billion as the government’s take, amounting to 41% of the company’s profits in Israel.

Israel Chemicals Fertilizer president and CEO Dani Chen has delivered to Minister of the Economy Naftali Bennett NIS 400 million in potash royalties for 2012. The company pays 16 % of its pretax profit in royalties.

“Israel Chemicals transfers NIS 1.5 billion as the government’s take, in the form of direct taxes, royalties, and the dividends tax, amounting to 41% of the company’s profits in Israel,” said Israel Chemicals Ltd. (TASE: ICL) in a statement today. “In the coming years, Israel Chemicals will pay even more, as a result of changes in the tax policy toward the company, and the government’s take will reach 56%. In addition, the government receives up to an additional NIS 2 billion in indirect taxes on the company’s activity.”

Read more at Globes

In a report that looks at the 10 major themes likely to emerge in the minerals space, Goldman identifies potash as the commodity for the next decade as the pressure to feed the world by achieving greater yields from nutrient deficient soils in China, India and elsewhere grows.

Goldman said potash could be to the next decade what the boom commodity of iron ore was to the last.

BHP’s pending exposure through the development of Jansen is a key factor in why BHP and two other companies — Freeport (copper) and Uralkali (potash) — are considered by Goldman as the likeliest to benefit from their “late-cycle commodity exposure”.

Read more at The Australian

NEW DELHI/MUMBAI (Reuters) - India on Wednesday decided to cut the subsidies on phosphate and potash-based fertilisers in the fiscal year that began in April in an effort to rein in its fiscal deficit.The

It will also limit India’s imports of potash and phosphate. India imports all its potash and also buys about 90 percent of its phosphate from abroad.

The subsidy for diammonium phosphate (DAP) has been cut by 14 percent from a year ago to 12,350 rupees per tonne for 2013/14, and for muriate of potash (MoP) by 21.5 percent to 11,300 rupees per tonne, the government said in a statement.

Read more at Reuters