Potash prices could beat $650/t by end 2012 by: Matthew Hill 31st August 2011 TORONTO (miningweekly.com) ? As the supply-demand equation for potash continues to tighten, prices will continue to climb, analysts said on Tuesday, with one predicting they may even top $650/t by the end of next year.
?The average spot price of potash should climb to at least $650/t by late 2012 ? perhaps higher,? Scotiabank economics VP and commodity markets specialist Patricia Mohr told Mining Weekly Online.
The price for the crop nutrient averaged $490 free-on-board at the Port of Vancouver in July and August, while Canadian potash marketing cartel Canpotex signed longer-term supply deals with India and China to supply them at prices as high as $530/t for some volumes.
Canpotex said earlier this year it had committed all of its volumes for the third quarter of this year and a large portion for the last quarter, as surging grain prices and demand incentivised farmers to apply more fertilisers.
?In the short term, you should expect prices to continue going up,? Northern Securities analyst Fadi Benjamin said in an interview.
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