Potash Rally to Slow as Mining Capacity Expands: Commodities

Potash’s rebound from the biggest plunge in 48 years will slow next year as Mosaic Co., Potash Corp. of Saskatchewan Inc. and OAO Uralkali increase mining capacity.

Potash Corp., the largest producer by market value, will see its average selling price climb 22 percent in 2012 after an estimated 35 percent gain this year, Don Carson, an analyst at Susquehanna Financial Group in New York, said in an Oct. 28 note. U.S. Midwest prices will fall 5.2 percent in 2012 after rising 32 percent this year, according to RBC Capital Markets.