BUZZ-K+S: Jumps after Mosaic idles one of its mines

Thu Jul 14, 2016 6:32am EDT
 
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** Chemicals company's shares rise >6 pct

** U.S. fertilizer producer Mosaic said on Wednesday that it will idle a Canadian Colonsay potash mine

** Mosaic's suspension of the mine and Potash Corp's suspension New Brunswick ops earlier this year are measure that are likely to support potash prices that are hovering near decade lows

** Baader Bank says this 'idle trend' will accelerate and therefore pricing power in potash market should improve

** "Mosaics step to idle approx. 20% of its own capacities or 3% of global potash capacities underpins our view that the pain in the potash industry is strong enough for structural or strategy shifts of the relevant player. Therefore, we see our Buy case on K+S confirmed," Baader Bank adds

** Canada's Potash Corp, Agrium rose up to 4 pct on Wednesday, while Mosaic closed +3.5 pct

** K+S is the top performer on German mid-cap index