July 10, 2009 / 5:18 PM / in 8 years

Shares of Potash, rivals, hit by India-Silvinit deal

TORONTO, July 10 (Reuters) - Shares of Potash Corp (POT.TO) and its rivals fell sharply on Friday after fertilizer trade publications reported that India has settled some of its 2009 potash contract order with Russian producer Silvinit SILV.RTS at a price that is sharply below market expectations.

Fertecon and FMB reported that India has apparently agreed to buy 850,000 tonnes of potash at a price of $460 per tonne, according to analysts.

This is well below the $625 to $635 per tonne range that all other major producers had proposed.

Shares of Potash Corp fell 8 percent to $85.96 in afternoon trade, while those of its peers Agrium (AGU.TO) and Mosaic Co (MOS.N) were down 4 percent and 3 percent respectively. (Reporting by Euan Rocha; editing by Peter Galloway)

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