Potash (NYSE:POT), Mosaic (NYSE:MOS) and Agrium (NYSE:AGU) signed a 3-year deal with China-based fertilizer giant Sinofert Holdings, via Canpotex, the marketing and pricing arm of the three companies.
Terms of the deal are for a minimum of 3.15 million tons of potash to be delivered over a three-year period, with pricing to be negotiated at six-month intervals.
The deal begins on January 1, 2011 and extends through December 31, 2013.
With the probability of supply challenges in the years ahead, China and other Asian countries will be beneficial to fertilizer suppliers for some time to come, as demand will eventually outpace supply.
Potash Corp. supplies over 53 percent of the potash sold by Canpotex.
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