Tuesday, July 6, 2010

Mosaic (NYSE:MOS) Potash (NYSE:POT), Syngenta (NYSE:SYT) Intrepid Potash (NYSE:IPI) Will Remain Under Pressure

Fertilizer companies Mosaic (NYSE:MOS) Potash Corp. (NYSE:POT), Syngenta AG (NYSE:SYT) and Intrepid Potash, Inc. (NYSE:IPI) will continue to remain under pressure for now, as there's nothing in the short term which will generate demand for their products beyond current levels.

Like with other commodity companies though, these companies will definitely be a good long term play, as ultimately the demand for food in countries around the world will result in increased demand for fertilizers to grow the crops needed to supply the world with that food.

For now though, austerity is reigning, and until that changes, countries and farmers will continue to pay close attention to costs and pay only what makes sense to them, which will keep downward pressure on fertilizer prices.

That won't be sustainable over the long term, but until the global economic picture improves, that will be the way of life for these fertilizer companies.

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