In the latest Profercy Phosphates report, dated 7 April 2011 the...

In the latest Profercy Phosphates report, dated 7 April 2011 the following was reported by Tom Jago:

"Global phosphates prices continue firm. Spot supply of all phosphates products is tight, with demand supported by booming crop values. In the case of corn, prices closed today within 5% of all-time highs.

...Other supply-side issues include the Agrifos P2O5 closure, the Moroccan jv DAP/MAP start-up delay and likely Q2 maintenance in the US, Russia and Lithuania. Spot availability is likely to continue under pressure, with world pipeline supply already thin.

...With estimates of an estimated 5.5 million tonnes (of DAP) needed to land in India by early October, pressure is mounting on the Indians to buy from the China.

...Phoschem and Trammo have large-cargo shipments (of DAP) from the US to Brazil and Argentina in April, seen netting back in a broad range said from $620-627 pt fob."

It also goes on to report the following:

1. OCP Q2 phos acid up $140-150 from Q1 prices, to $1,115 - 1,150 pt cfr. A 14% increase.

2. "Demand for Moroccan and Syrian rock from non-traditional buyers has surged in recent weeks and is pressuring OCP load capacity, causing long load delays at Casablanca and Tartous."

3. Moroccan DAP price $640-655 pt fob.

4. Moroccan RP (31-33%) $170-180 pt fob, which supports earlier reports that RP has increased recently by $20 pt. A 12.5% increase.

This latest report is very supportive of UBS's predictions I started this thread with. We continue to find ourselves in a particularly favourable environment within which to do a funding deal.

Along with many others, I look forward to more information, in due course, on MAK's progress with Verte. I remain quietly confident.

Cheers