Potash typically trades at higher prices than would otherwise be dictated by market forces, because the largest five companies control 65% of production, thus reducing competition. As long as Canpotex maintains the potash cartel, prices are unlikely to fall. Furthermore, as indicated by the USDA World Agricultural Supply and Demand Estimates report, the demand for global farm products is outpacing supply. Demand would actually be even higher if developing nations had more stable commercial banking operations, which would extend farm credits.
With diets in emerging markets, specifically China, become more nutrient-oriented, and new farmland developments requiring more fertilizer to produce competitive yields on less arable land, potash prices will continue to escalate, along with commodities such as corn and soybeans
