NEW YORK, N. Y. (Reuters) – Saskatchewan fertilizer producer Mosaic Co. has forecast sequentially higher potash volumes in the third quarter, and expects to be at the high end of its outlook range for phosphate sales volumes.
“Signs suggest a recovery in demand for nutrients is underway. We expect shipments and applications to return to more normalized levels in calendar 2010,” the company said in a regulatory filing.
Analysts expect demand for potash to bounce back this year as farmers scramble to replenish soil nutrient levels.
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This, after prices retreated to about $350 to $400 a tonne US from above $1,000, as farmers, hit by the credit crisis and falling grain prices, reined in their use of the nutrient.
Mosaic expects third-quarter potash sales volumes of 1.7 to two million tonnes, at a selling price of $340 to $360 per tonne. Second-quarter potash sales volume came in at one million tonnes.
The company said it expects to be at the high end of its outlook range for phosphate sales volume of 2.2 to 2.6 million tonnes for the third quarter.
It still sees spending between $1 billion and $1.2 billion in 2010.
WASHINGTON, D.C. (Reuters) – American net farm income was forecast at $63 billion US for 2010, up 12 percent from last year, thanks to a recovery in livestock prices, the U.S. Department of Agriculture Department said in its first forecast for the year.
“In 2010, the economic conditions for livestock producers are expected to improve, while the economic conditions for crop producers are expected to deteriorate slightly or stabilize,” the USDA said in its report.
The forecast is slightly below the 10-year average for net farm income, but is still the fifth-largest amount on record, said the USDA.
Record income was seen in 2008 after farm prices spiked to record levels, but U.S. farmers saw a sharp drop in 2009 with the global recession, which hurt export and domestic demand.
Net farm income measures income from production in the current year, regardless of whether it is sold during the year, while net cash income reflects sales during the calendar year.
The USDA forecast net cash income for 2010 at $76.3 billion, up eight percent from last year, and $3.5 billion above the 10 year average.
Cash receipts for wheat will see the biggest decline because of poor prices and smaller export sales.
“Quantities of U.S. wheat available for sale in 2010 are forecast to decline 9.7 percent, while quantities sold are expected to decline over 16 percent from calendar year 2009,” the USDA said.
Expenses are forecast to be little changed from 2009, the USDA said, noting fertilizer and feed costs are down.
Government payments were also forecast to be little changed at $12.4 billion.
