The price of potash has increased substantially in the last year as evidenced by recent announcements related to contracted sales. During February, Canpotex Ltd. reached an agreement with China’s potash buying committee for standard-grade potash shipments through to December 31, 2022, at a price of $590 per metric ton (mt) on a CFR or delivered basis. Canpotex also signed a similar potash supply contract with its long-term customer, Indian Potash Ltd (IPL) for potash shipments for the same term and price.
“China and India are important markets for Canpotex,” said Gordon McKenzie, Canpotex President and CEO. “We look forward to continuing our support for food security by providing our customers with a reliable and stable supply of potash to supply their growing needs.”
During January, Canpotex reported that it was fully committed on volumes for potash sales through March 31, 2022. This is due to continued strong demand and solid fundamentals for agricultural commodities in key offshore markets. In addition, the focus on food security continues in a number of Canpotex’s markets.
Canpotex is a joint venture that is owned by two Saskatchewan potash producers — Mosaic and Nutrien — with each shareholder having an equal ownership in the company. We create value for our shareholders and customers by leveraging more than 45 years of expertise in global potash sales and transportation, McKenzie explained. The partners pool resources to efficiently supply world markets with high quality potash for food production.
Canpotex manages and operates a fleet of customized railcars, port terminal facilities, ocean vessels, and more — serving these Saskatchewan potash producers in providing this important fertilizer nutrients to food producers, farms and communities around the world.
Fertilizer prices have generally maintained their elevated prices so far in 2022 supported by strong demand, tightened supply, higher input costs, and positive cash margins on crops for growers. (Source: Fertilizer Week, Nutrien)
