Potash Investing 05 Jan 2012:"As a result, the weak global...

Potash Investing 05 Jan 2012:

"As a result, the weak global economic picture, coupled with emerging economies who are proving to be more elastic and responsive to rising food prices than predicted, has created conditions in which growing supplies of fertilizer stocks, in particular phosphate, are unwanted. Already Mosaic Co. (NYSE:MOS), the world’s largest producer of phosphate and second largest of potash, announced earlier this week plans to reduce its production of phosphates by as much as 250,000 tons over the next three months in response to shrinking demand and falling spot prices, the Wall Street Journal reported.

With expanded phosphate production rising over the past year, sufficient phosphate surpluses in Brazil and in Europe mean that it is unlikely we will see much support for current phosphate prices according to a recent report produced by the Dutch economic forecasting firm Rabobank.

As a result, numerous reports have seen market participants exercising caution leading into the spring planting season as buyers have reduced purchases to take advantage of downward trending prices expected in the spring in a number of countries who export into emerging and established markets.

Potash prices too, though better protected by a limited supply base from singular marketers in North America and the former Soviet Union, are not immune to weakening global demand."

RUM has a great P discovery,no doubt, but a lot of uncharted water to production especially if they go the DAP way.
The DSO looks a plus with offtake potential, but a PFS looks ways off yet.
And there's the as yet unknown D word, - Dilution.
A look at the years of sufferings of STB longtermers shows where not to go.
And lets not forget how BHP can manipulate markets.Current e.g. manganese.
GLTA.