From Motelyfool this week……Potash is a key crop nutrient, most...

From Motelyfool this week……

Potash is a key crop nutrient, most notable for its assistance in drought protection. Although demand ebbs and flows, the trend has been toward higher use as nations around the world climb up the economic ladder. This, however, is science, not finance. Growing plants deplete the nutrients in soil, potash helps replenish what's been lost.
As the global population grows, more food is needed to feed everyone. Moreover, as countries advance economically, its residents start to eat more crop intensive foods, like meat. As that increases, it will likely keep upward pressure on the demand for potash.

The potash market, however, was hampered by an unusual even in 2013. A European consortium broke apart, leaving the market in a state is confusion. One of the key players in the breakup made overtures that it would seek market share at the expense of price, pushing potash buyers to the sidelines even as prices fell.
During his company's fourth quarter earnings call, Agrium CEO Charles Victor Magro noted the impact: "Prices for all 3 major crop nutrients were down over 25% compared to the fourth quarter of 2012." That pushed results at Agrium, Potash, and Mosaic lower, with each posting full-year 2013 results that were below 2012 levels.
It can only last so long

However, Agrium's Magro went on to say, "The good news is that we have seen a significant rebound in global nitrogen and phosphate markets..." and, "...there has been a definite improvement in the sentiment within the global potash market." This falls on the science that underpins the potash market's long-term prospects—you can delay fertilizing, but you can't stop.

Potash CEO William Doyle summed it up well, "As farmers around the globe look ahead to the upcoming growing season, purchasing activity is strengthened." And, "...we believe that the conditions in place today could support record or near record global [potash] shipments of 55 million to 57 million tonnes in 2014." That would be a welcome turnaround from 2013.

Fertilizer demand is on a long-term upward path.