Potash and Mosaic struggling with flat potash prices
It's not too often when potash inventories decline and the prices fall with them, but that's been the case, and consequently Potash (TSE:POT) and Mosaic (NYSE:MOS) will struggle in the short term as demand is down, which is ultimately what has driven prices south.
This is no different than gasoline, which can have similar inventory movements at times when demand is down, and prices fall as well.
With little hope of anything in the market happening to give potash prices a boost, both Mosaic and Potash were downgraded by Goldman Sachs (NYSE:GS) recently.
Prices for potash have been level at approximately $350 a ton, about 21 percent below the five-year average.
Expectations are orders from the South American market in the summer months may help the fertilizer generate some momentum.
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