Of course the price spike was due to speculation. One word biofuels, all over the media. Plenty of references.
Phosphate was never going to maintain those heady prices. The drop from those prices would have happened regardless of supply and demand but yes I agree the drop to current sustained levels was due to lower demand, partly contributed to by the global credit crunch (farmers unable to secure credit) and the oversupply of phosphate which was stored and needed to be used up.
AEV Price at posting:
37.0¢ Sentiment: None Disclosure: Held
