The potash market has begun to “gain traction” since China agreed its long-awaited import deal, said the CEO of fertilizer giant Mosaic. Noting improved farmer demand, he said he was “confident [that] potash demand will emerge” after last year’s slump in orders, blamed on tight credit and lower crop prices, which was billed by some analysts as the worst in 20 years. China’s agreement to buy potash from Belorussia and Russia at $350 a tonne, including freight, had resolved uncertainty about how low prices might go. China, as the world’s largest potash importer, typically gets lower rates than other buyers. “The potash market… is beginning to gain traction with the recent settlement of contracts in China which has afforded the marketplace price discovery,” Mosaic said. The group, which is 64% owned by grain giant Cargill, also flagged “recent increased potash application rates in the Americas, driven by nutrient-depleted soils”.
