Is potash the most under applied nutrient around the world?

Question

I like PotashCorp of Canada a lot as an investment. Do you know much about the company and it's prospect?

Answer 1

K- potassium is second applied only to N-nitrogen.  and the company has and will continue to be strong

Answer 2

The amount of potassium chloride the company has to extract and sell is finite. It should be selling less at higher prices to conserve its supply into the future.

But have no fear that demand will decline. Because this product is very soluble, every bit of excess applied will be washed out of the soil down to the ocean if there is adequate rainfall.

Sales to China can be on a cash basis, and it would benefit potash company to operate that way. Sales to China would create some shortages in North America, which would also improve profitability.

People changing from sodium salt to potassium salt for water softeners would not make much difference because the volume involved is small, even though it does reduce risk of hypertension, and water from septic tanks that has kcl instead of nacl will reduce need to use kcl as fertilizer.

Answer 3

Potash Corporation of Saskatchewan Inc. Signs Letter of Intent to Purchase Potash Company of Canada.

It sounds like a growing company and should be a good investment for you. To answer your question, Potash or potassium (K) is the second most purchased applied nutrient in agriculture, following Nitrogen (N), Phosphorus (P) would be third. There is an ever increasing demand for all three nutrients so the demand is going to be increasing. You don't have any worries there. The overall success of the company is going to depend on the management of the company, and I can't help you there at all.

http://www.potashcorp.com/investor_relat...

Answer 4

I know nothing about the company, but as for potash, or the potassium component in the big three macro nutrients, it is necessary for good strong plants. One of the lesser of the dozen micro nutrients would fit the bill for under application as the cheaper fertilizers will not incorporate them. That is not to say that inexpensive fertilizer does not have the micros. A local company in our area provides a great product that has all the micros incorporated and it is not only one of the least expensive, it is the best that I can find (cost for coverage) and is 75% organic. It would seem that the cost is low because the company is local and represented by local industry associations. A quick look at the company you question leads me to believe that they are a massive producer and exporter of  agricultural chemicals and feeds with bulk shipping in rail car loads. You can find them on the stock exchange and follow how they doing. One thing to note is it seems that the are or intend to get involved in exports of their product to China. I would be careful with investment there as I feel the restrictions and regulations with respect to that country will be a problem in the near future due to recent news articles and the increased scrutiny. That equates to higher cost for all above and beyond governmental issues and relationships. But, I do green plants not green money and never the two shall meet.