Fertilizer Companies Making Big Bet on Rebound (POT; MOS; AGU)

From Agrimoney:

PotashCorp, the Canadian potash giant, revealed the scale of the industry's bet on a rebound in consumption of the nutrient, showing inventories at their highest level since during the 2009 market collapse.

Potash stocks held by North American producers, such as Agrium, Mosaic and PotashCorp itself, soared 274,000 tonnes last month to nearly 3.3m tonnes, the company said.

The rise took inventories 49% above average levels, and to the highest since late 2009, when the market was recovering from a slump in demand prompted by the world economic crisis and tumbling crop prices.

Indeed, last month's inventories came within 10% of the 2009 high, of more than 3.5m tonnes, reached as weak demand caught producers unawares.

Bet on better times

However, while some potash groups such as Mosaic and Potashcorp, and Russia's Uralkali, have announced some cutbacks to output this time, producers have voiced optimism that a downturn on demand which kicked in late in 2011, as crop prices fell, will prove a temporary blip....MORE