CA - Canpotex surprises analysts with China potash supply contract
2023-06-06 12:59:37 ET
Canadian fertilizer producers Nutrien ( NYSE: NTR ) and Mosaic ( NYSE: MOS ) push higher in Tuesday's trading after early losses, now +2.6% and +2.9% respectively, as fertilizer marketing firm Canpotex said it signed a standard-grade potash supply contract with China's buying committee at $307/metric ton on a cost and freight basis.
The new agreement runs to year-end 2023, and is 48% below the contract for standard-grade potash bound for China a year ago and 27% less than a key contract agreed with Indian potash importers in April.
The news of a China contract comes a surprise to some analysts , who assumed China may not sign a long-term deal at all due to steady supply by rail from Russia and Belarus, and otherwise bearish pressure on pricing around the world since early this year.
More on Nutrien and Mosaic:
- Mosaic Stock: The Time To Invest Has Not Yet Come
- Nutrien Downgraded To Hold At Berenberg On Weaker Fertilizer Prices
- Nutrien's Q1 2023 Earnings Disappoint: Stock To Underperform
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Canpotex surprises analysts with China potash supply contract