CHART: Global mining and metals – a quick reality check
Demand for energy transition metals has injected optimism into mining, but it represents only a sliver of the $4 trillion global industry.
When Potash Corporation of Saskatchewan released its Q1 financial statements on Saturday, it said there were more good things happening in the industry.
“With rising demand putting pressure on global supplies of a wide range of crop commodities, we believe the need for high-yield agriculture around the world has never been greater,” said the company in a statement.
The company believes demand will be strong for its product despite adverse planting conditions in May. The company said that Latin American demand is projected to reach 10 million tonnes, and Cantopex delivered price to Brazil will reach $520 per tonne.
“While record or near-record prices for many crops — including $7-per-bushel corn and $14-per-bushel soybeans — are creating headlines, farmers are recognizing a business opportunity that extends beyond short-term price movements. Even at crop prices well below current levels, farmers see the opportunity to generate a significant return on their investment. This is shifting their emphasis towards maximizing yields to capitalize on the economic opportunity — and that is best achieved by improving fertilization application practices to replenish nutrients in the soil and protect its fertility for future crop.”
Michael Allan McCrae wrote this story. You can contact him at [email protected] or @michaelmccrae.
