has anyone thought about cmp as a play on the growth in demand for fertilizer for animals and soy to feed china? the fertilizer companies are rocketing (check out POT), but somehow cmp is still a bit sleepy...
just took a aposition in hopes that the 18% of revenue derived from potash is poised to grow... not to mention that American Funds is huge holder of the stock. also love that dividend.
Potash is a major ingredient in most fertilizers and as I expect a major increase in corn production to sustain ethanol production, the use of fertilizers should also increase correspondly. CMP is a good long term hold that can weather good and bad winters.
Not an expert, but I believe that potash is an ingredient in specialty fertilizers. Corn is basically a nitrogen consumer, so an increase in cron acres for ethanol would require more nitrogen use, not potash. Since nitrogen for fertilizer is made using large amounts of natural gas (also used in salt mining) the price of natural gas may climb quite high this summer, especially if we have a big heat wave (more nat gas use for electricity to run air conditioners). Throw a possible hurricane or two in the mix and nat gas could climb even higher.