Big losers in this morning happen to be companies as Potash, that is one big fertilizer producer. Stock is also 21% down in pre-market.Then what is it that’s going on where Potash, as well as its ilk, is concerned.
Dave Lutz of Stifel, Nicolaus does pass along this:Yesterday, the names of Potash surged late during the session while Investor letter of Dan Loeb letter signaled one large position within CF.
Also this morning, the largest producer of potash in the world, OAO Uralkali, broke up one marketing venture which happened to be controlling about 43% of the global exports. This signals that the prices would weaken as the company of Russia grabs the share of market – Uralkali has plans regarding boosting of sales to the consumers which include China, which does import around one-fifth of the supplies globally – expecting the prices to decrease to $300 for each tonne from the $400 for every tone before.
There tended to be a point some few years back, when it did seem like those companies can do nothing wrong. Reportedly, there was shortage of the raw materials, when we were within midst of the massive agriboom, that was predicted partly on the endless demand that was from China.
Commodity boom now has peaked. Also, the story of China isn’t very exciting.