All Posts from April 30, 2015

PotashCorp reports improved – Alert

Potash Corp. of Saskatchewan Inc. reported first quarter net income of $370 million ($0.44 per diluted share) on sales of $1.66 billion, up from the year-ago $340 million ($0.40 per share) and $1.68 billion.

Mosaic 1Q results up – Alert

The Mosaic Co. reported first quarter net earnings of $294.8 million ($0.80 per diluted share) on sales of $2.1 billion, compared to the year-ago $217.5 million ($0.54 per share) and $1.99 billion, respectively.

TCP calls another urea tender – Alert

The Trading Corp. of Pakistan called a second tender for 50,000 mt to close June 1. Shipment must be concluded within two weeks of the opening of the letter of credit.

The government authorized TCP to import 300,000 mt by July. Rather than call one tender for the full amount, TCP is repeating a previously successful strategy of calling multiple back-to-back tenders for smaller amounts.

The rules of the TCP tender process do not allow the buyer to negotiate with the second or third lowest offering firms. The company must also give a one-month notice, unless the government grants a special exemption.

Sources said TCP might be able to negotiate with the lowest offering company to increase the tonnage it supplies. If the buyer does try that, said one trader, there may only be three back-to-back tenders. Another trader countered that if TCP relies on that strategy, it runs the risk of falling short of its purchase goal.

The buyer also runs the risk of chasing a rising market, with each tender closing at ever-higher prices, especially if IPL takes a large order in its tender that closes May 9.