RWD is in a strong sector as a pure potash play - prices atill...

RWD is in a strong sector as a pure potash play - prices atill over $US800 or over $A1200/t. As markets regain balance and when Lake D resolved all the ingredients of a recovery play.

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Potash prices stay strong
Joanne Paulson, Saskatchewan News Network
Published: Tuesday, October 28, 2008
SASKATOON -- Potash was the only bright spot among commodities in September, as oil began its freefall and agriculture futures plummeted, says a report from Scotiabank.

The bank's commodity price index, which follows 32 of Canada's major exports, declined 6.8 per cent month over month. The oil and gas sub-index dropped 10.6 per cent and the agricultural sub-index fell 8.9 per cent.

The index remained 24.5 per cent above the September 2007 level, but is down 15.6 per cent from its July 2008 peak. Further declines came in October, along with the deepening global financial crisis.


But potash has held its own, rising to a record spot price of $862.50 US per tonne in September, up from $802.50 in August. Prices were stable into mid-October, at $865.

"A strike at three of PotashCorp's mines in Saskatchewan, record low North American inventories and sold-out contract volumes at major potash producers continue to underpin prices," said the report.

Adding support to potash prices is the need for more potash in China. China's imports from Canada and other producers are down about 50 per cent this year over last.

"While potash prices could ease moderately in 2009, this market will be relatively resilient," said the report.

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http://www.canada.com/reginaleaderpost/news/story.html?id=4f9d3e74-65e4-4702-bd11-1bac4c8df789