The stock is down 21% in the pre-market.
So what's going on with Potasha and its ilk?
Dave Lutz of Stifel, Nicolaus passes along the following:
Yesterday, Potash names surged late in the session as Dan Loeb’s Investor letter signaled a large position in CF.
This morning, OAO Uralkali, the world’s largest potash producer, broke up a marketing venture that controlled about 43 percent of global exports, signaling prices will weaken as the Russian company grabs market share - Uralkali plans to boost sales to consumers including China, which imports about a fifth of global supplies - Expects prices to fall to $300 a tonne from $400 a tonne.
There was a point a couple of years ago, when it seemed like these companies could do no wrong. There was reportedly a shortage of raw materials, and we were in the midst of this massive agriboom, which was partly predicted on endless demand from China.
Now the commodity boom has peaked, and the China story isn't so exciting.
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