The Latest Market Commentary From Westco Fertilizer

Our Fertilizer wholesalers market commentary just hit my desk. The key points I take away from it are:

• Ok the prices for N and P are going to be really really high. (Please note, these guys are not above providing a good panic)
• Now real points. Western Canada should not be short of N. We are net exporters to the States.
• Westco is calling for another $25 increase on urea (?)
• Florida ( a shipping point) inventory is low in Phosphate (P). That will drive price up in North America
• Western Canada P imports are slower than last year and volume is only slightly ahead of 2006
• Westco is calling Western Canada 75,000 to 100,000 short of P for 2007. If that happens price will rise. (Please note, these guys are not above providing a good panic)
• Westco is calling for 2 more price increases for P to go with the $30 that just hit.
• These projections could be out to lunch if retails are misjudging there needs. In the last 2 or 3 years projecting at the retail level has been inconsistent.