"Goldman Sachs upbeat on potash prices - for now" (AGU; IPI; MOS; POT)

From Agrimoney:

Goldman Sachs raised its forecast for potash prices, but cautioned over the threat of low crop prices in limiting prospects for further gains, even as Agrium cautioned again over profits, citing fertilizer market weakness.

Goldman Sachs hiked by $37 a tonne to $318 a tonne its forecast for potash prices this year, as measured in the Brazilian market, on a CFR basis.

While the upgrade came the day after China, the top potash importer, signed a deal to buy the nutrient at $305 a tonne, a factor many commentators saw as putting a floor into the market, Goldman cited a potential reformation of the Belarusian Potash Company cartel as behind its upgrade.

It was July's break-up of BPC, which controlled more than 40% of world potash trade, which triggered a decline in values from levels of $400 a tonne or more, as buyers held-off in expectation of continued price falls.

'Pent-up demand'

Goldman acknowledged that "no formal decision has been announced to date" on renewed co-operation between BPC's former members Belarus-based Belaruskali and Russia's Uralkali...

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