Potash faces ‘significant headwinds’ Macquarie says

Slow adjustments to potash supply will “prolong the pain of rebalancing,” while “power is shifting to the buyers,” Macquarie Research says. “We expect a record large surplus of 6 million tonnes to accumulate at the end of 2016 and therefore remain bearish on potash – our core underperform call,” the bank states in a research note on commodities in mid-January. In a new research note today, the bank cut its 12-month target price on Potash Corporation of Saskatchewan (TSX: POT; NYSE: POT) to US$14 per share from US$17 per share and from C$23 per share down to C$20 per share. The bank is forecasting lower potash demand this year and says its outlook continues to diverge from PotashCorp’s, which is forecasting global potash shipments from all producers in 2016 will be between 59 million tonnes and 62 million tonnes. Read the complete article at NorthernMiner.com/news/potash