Friday, December 9, 2011

I think there’s a trend here

 

image

 

I can’t give any advice about buying fertilizer but I don’t see anything on that chart that would make me rush out for yearend speculative buys.  If I needed the tax expense phosphate looks like the better bet.

But that’s free (non)advice and probably worth exactly what it cost you.

(later)

The chart above was originally posted in early December.  FWIW I have updated it to the 2nd week in January. 

CME-Swaps-13-1-12

Also since I made the initial post Mosaic has announced Phosphate production cuts and Potash has temporarily closed one mine.  As I have said many times, P & K are in strong hands – N still trades somewhat like a commodity but P & K pricing is very definitely managed.

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