Potash prices are in the dumps, but the battered shares of companies that produce the crop nutrient have been nudging higher, suggesting the worst days for the sector may be behind it.
Potash doesn’t usually attract the level of attention of more economically important commodities such as copper or crude oil. Weaker potash prices, reflected in the latest Canpotex contract, could weigh on profits for the rest of the year.on its 2023 EBITDA – or earnings before interest, taxes depreciation and amortization – at a time when fertilizer prices are also lower in Brazil and buyers are taking a “wait-and-see” attitude toward crop inputs.
Nutrien’s share price , though still the worst performer within the S&P/TSX 60 Index this year, has risen almost 11 per cent in Toronto from an intraday low on June 6. There is even an argument that the Canpotex deal could be good news for potash producers in the longer term.