Tuesday, April 24, 2012

"Credit Suisse cuts forecasts for potash prices" (POT; MOS; MOO)

From Agrimoney:
Credit Suisse questioned potash groups' hopes of a revival in potash demand by forecasting a drop in world shipments this year, and cutting price estimates, citing "extreme caution" among distributors.
The bank warned that it was "now sceptical over whether potash prices can regain the momentum seen last year".
Indeed, a "sharp" rebound in volumes, fostered by unexpectedly prompt deals to supply China, the top importer, look set to peter out.
"We believe that volumes could weaken again in the second half [of 2012]," Credit Suisse said, forecasting a fall to 52m-53m tonnes in world shipments this year, below last year's 55m tonnes.
The figure is also below the 56m-58m tonnes forecast two weeks ago by Uralkali, the Russian potash giant, and an estimate of "up to" 58m tonnes from K+S, its German rival.
'Extremely cautious'
Credit Suisse's forecast reflected an observation that "distributors remain extremely cautious, given the uncertain grain price outlook, and are looking to defer new purchases until there is greater clarity around the US crop size and grain prices"....MORE
See also:
Fertilizer Companies Making Big Bet on Rebound (POT; MOS; AGU)