Wayne Brownlee, the chief financial officer of Potash Corp. (POT), the world's largest maker of potash fertilizer, said China's talks with Belarusian Potash Co. will have a dwindling impact on fertilizer prices the longer the discussions drag on.
At a Bank of America Merrill Lynch Global Industries conference, Brownlee said people are tired of waiting for the talks to progress and that they are getting more comfortable with current fertilizer prices. Vancouver-traded potash currently sells for $420 a ton, down 27% from a record high of $575 in July, according to Bloomberg News. Potash prices have tumbled because farmers have put off orders in anticipation of the China-Belarusian Potash negotiations being finalized.
Mosaic (MOS), the second-largest fertilizer maker in North America said this week that China may agree to buy potash from European producers for less than $400 per metric ton. India agreed to pay $460 per metric ton in July, according to Bloomberg.
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