Potash producers are holding up in the face of broad market weakness, as they stand to come up roses if the Ukraine crisis leads to economic sanctions against Russia.
Potash Corp. of Saskatchewan(POT) rose 0.5%, Mosaic(MOS) gained 0.1% and Intrepid Potash(IPI) climbed 0.7%. In addition, CF Industries Holdings(CF) tacked on 1.4% and Agrium(AGU.T) advanced 1.1%.
Meanwhile, the S&P 500 slumped 1%, and was headed for the biggest one-day decline in a month.
The U.S. and Europe have condemned Russia for moving troops into Ukraine’s Crimea region, with some countries threatening possible sanctions.
Robbert van Batenburg, director of market strategy at global brokerage firm Newedge, said potash, a key fertilizer ingredient, is one of Russia’s important export products.
“The erstwhile cartel between Russia and [neighboring] Belarus supplied 43% of total global potash demand,” in 2013, Mr. van Batenburg said. “Non-Russian potash supplier…may benefit from a potential trade sanctions that could impact Russian potash exports.”
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