Potash West is our preferred potash exposure and it's performing solidly from a share price perspective as potash demand and prices improve

Potash West is our preferred potash exposure and it's performing solidly from a share price perspective as potash demand and prices improve. There have been some interesting recent developments in the global potash industry because of their broader potential impact. According to the latest data from Canada's Scotiabank, global shipments have rebounded significantly this year, whilst prices are also creeping back up. Buyers have been making the most of lower prices and global potash deliveries could be on the high side of expectations at 58 million tonnes (+7%), boosted by strong sales in North America, record fertilizer application in Brazil, and a modest pick-up in demand from palm oil growers in Malaysia and Indonesia. At the same time spot potash prices (FOB Vancouver) edged up from $302.50 in June to $310 per tonne in July, after bottoming at $295 in January. $310 a tonne is of course a long way away from the $950 touched during 2009, but most metals and minerals producers today would settle for a rising price environment, however modest.