Nosedive of Potash Corp Drives TSX to Two-Week Low Figures

This article was last updated on April 16, 2022

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The main stock index of Canada dipped down to its lowest position since the past almost two weeks on Tuesday, in light of the abrupt breakup of a Russian-Belarusian potash joint venture that lowered the Potash Corp shares down to the least, along with the growing speculation of a steep decline in the price of the fertilizer ingredient. Russia’s Uralkali unaided the world’s largest potash association in a move which is deemed to yield an expected price crushing by 25 percent, signaling a reformed industry and thrashing shares of rival producers.

Consequently, one of the world’s largest fertilizer makers, Potash, gave away more than a fifth of its market value, lessening down to C$30.99 by almost 20 percent. Considering the fact that more than 12 million shares changed hands on Tuesday, it is calculated to be the most active listing on the Toronto Stock Exchange until today.

The president of Maison Placements Canada, John Ing, commented that “you just have to look at the stock price” in order to understand the influence of the Russian company’s strategic shift on the industry. Another member of the North American Canpotex potash marketing joint venture, Agrium Inc., stumbled down by almost 5.3 percent to C$88.88. At the same time, investors have also prepared themselves for a policy statement from the U.S. Federal Reserve on Wednesday, although Ing does not expects a dramatic shift in policy by the U.S. central bank. He stated that “the Fed’s been in backtracking mode, so it will be more of the same.”