Ann: UCL: Sandpiper Phosphate Resource Upgrade , page-17

re: Ann: UCL: Sandpiper Phosphate Resource Up... A follow up here.

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The Energy Report: U.S. corn production is up 4% from last year, according to a new Crop Production Report released this month by the National Agricultural Statistics Service. The August 11 report forecast a 12.9 billion bushel harvest. "If realized, this will be the third largest production total on record for the United States," the report stated. Will this result in an increase in domestic demand and prices for fertilizer, particularly potash?

Richard Kelertas: Yes. We expect a gradual, but steady increase in crop and fertilizer prices going forward.

TER: Last May you predicted potash prices of $750/ton. When might that occur and what countries are the main drivers for this?

RK: A peak could come anywhere from 18?24 months from now. Our thoughts are as follows: We are seeing very tight potash markets. The Chinese have been asking for more. The Indians have now settled a contract for significantly higher than what they wanted to pay. Farmers have been pressuring the government to make sure there is plenty of fertilizer?especially potash and urea?in the fields, but they also want to make sure it's at a half-decent price.

http://passportpotash.us2.list-manage2.com/track/click?u=84ab78fadcd53739d3862bb4e&id=453cbde0f9&e=eec75e74bd