Strong commodities Friday, August 24, 2007 Murray Lyons, The StarPhoenix POTASH RISES
Meanwhile, the monthly Scotiabank index continues to track the incredible rise in overseas potash markets. In mid-July, the price for a Vancouver shipment was $202.50 US a tonne, a price that includes ocean freight.
By early October, it is expected Canpotex, the overseas selling agency for Saskatchewan potash, will sell potash into Malaysia and Indonesia at $330 US a tonne, a price already being achieved by Russian sellers.
"That, I am told, is just a spectacular level," Mohr said.
She says strong demand for biofuel around the world is causing palm oil producers in the two Asian countries to pour on the potash in addition to fuelling Brazilian sugar cane production for ethanol. The Scotiabank economist says she doesn't see potash prices hitting a plateau for the rest of the year.
"For sales into places like Brazil, Malaysia, Indonesia, China and Vietnam, you have various contracts kick in at various times of the year," she said. "So the average price at the Port of Vancouver is going to continue to climb for the balance of the year."
