* Canpotex agrees to sell potash at $460/tonne to India
* Potash Corp, Mosaic, Agrium shares jump
TORONTO, July 23 (Reuters) - Shares of Potash Corp POT.TO, Mosaic Co (MOS.N) and Agrium Inc AGU.TO jumped on Thursday, after their potash marketing consortium agreed to sell potash to Indian buyers at $460 a tonne, a price that’s likely to boost sales volumes.
Potash Corp and Mosaic both reported big declines in quarterly profits, as potash markets have been frozen for months, with the price of potash, until recently, staying stubbornly high. [ID:nBNG368711] [ID:nN22333827]
Russia’s Silvinit SILV.RTS, Germany’s K+S SDFG.DE and Israel Chemicals (ICL.TA) have all recently agreed to cut pricing and analysts are hopeful that the reduction will lead to a thaw in potash markets, increasing sales volumes. [ID:nLM297548] [ID:nN13161464]
Mosaic Co on Thursday confirmed that Canpotex, the marketing consortium, also agreed to sell potash to Indian importers at the same price as its overseas competitors.
The consortium concluded contracts in India totaling 850,000 tonnes with both its private and public sector partners, the company said.
Potash spot market prices in June were around $700 per tonne, but these are likely to fall to slightly above the $460 per tonne price level. Agrium has already indicated that it is reducing potash pricing in North America.
Analysts believe that these price cuts will set a new base on potash pricing and lead other big buyers like China and Brazil back into the market.
Potash Corp’s shares rose 5 percent to $93.43 on the new York Stock Exchange, while those of Mosaic and Agrium rose 6.2 percent and 5.3 percent, respectively. (Reporting by Euan Rocha; Editing by Frank McGurty)