Canpotex India Deal
The deal by Canpotex with Indian buyers to buy potash will help Canadian potash producers Potash Corp (TSE:POT), Mosaic Co (TSE:MOS) and Agrium Inc (TSE:AGU), which together own the exporting and negotiating unit of the trio.
Potash demand was down strongly in 2009, so even though this will help the companies going forward. The price of $370 a ton was in line with expectations and reveals the rebound will be one step at a time and not a large move. The deal was for 600,000 tons of potash.
Being the largest producer of potash, Potash Corp. will especially benefit from deal, accounting for 54 percent of the potash provided by Canpotex. Mosaic supplies close to 37 percent and Agrium 9 percent.
This announcement follows on the heels of 350,000 deal with China by Canpotex just a week ago. Details of that deal weren't announced.
Canpotex India Deal
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