Traders will be asking themselves where to invest in 2012 over the coming days. One approach that seems to help is to look not only at what my family needs are but what the world’s growing population needs now and in the future.
India’s farmers are doing everything they can to curtail their use of potash and other fertilizers, but reports that consumption of these key soil additives is “tumbling” may be significantly exaggerated.
Recent weeks have not been kind to bearish bets on the Bovespa, but the independent analysts at local firm Empiricus Research warn traders against being “fooled by a fallaciously pleasant October.”
The Chinese were thwarted last year in their attempts to buy giant Canadian fertilizer producer PotashCorp, but that isn’t stopping them from picking up smaller potash assets where they can.
Much-anticipated numbers from Mosaic show that the fertilizer market remains healthy, with no drop-off in demand in sight. While Mosaic itself has problems, this is great news for its rivals.
Some of the world’s biggest fertilizer manufacturers are either raising their prices or flirting with the idea. This is a space where traders could afford to build even more bullish positions.
Look for a note from Credit Suisse to give the fertilizer group a jolt this morning. Potash Corp., Agrium, and Israel Chemicals remain the best performers in this industry.
Analysts are fretting over whether high potash prices will create a once-a-decade plunge in fertilizer usage and demand for potash and other soil enrichment products. Don’t bet on it.