tag:blogger.com,1999:blog-8836114040595755997.post7123446253283182383..comments2023-11-12T06:43:21.790-05:00Comments on Commodity Surge: Goldman (NYSE:GS) Projects Low Potash Prices - Potash (NYSE:POT), Agrium (NYSE:AGU), CF (NYSE:CF) Will StruggleUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8836114040595755997.post-58492252078654149092010-07-18T11:53:54.445-04:002010-07-18T11:53:54.445-04:00These projected prices are not very low. It is not...These projected prices are not very low. It is not the price bubble we've seen in 08 but is not a marginal operation profit either. Worldwide oil supply does not have any problem to meet the demand either, and yet oil prices fluctuated a lot over the past 3 years. Like oil, potash supply is controlled by a relatively small number of large players. By controlling the supply they drive the price. Also, a drought year with low crops could spiral price up. All what I am saying is that I disagree with a projected picture of a stable price over a long period of three years. Potash price will fluctuate and so will the stock. The only solid evidence against a big price hike is the future entrance of two big new players into the market, which in the long term (it takes years to start up a new potash mine) will reduce price control and margins.Anonymousnoreply@blogger.com