Reuters — PotashCorp said Thursday that it will curtail production at two Saskatchewan potash mines for four weeks, as excessive supplies pressure prices.
The company said it would curtail output at its Allan and Lanigan mines, about 50 and 110 km southeast of Saskatoon respectively, for four weeks starting March 20.
The move is expected to reduce 2016 production by 400,000 tonnes, the company said.
Saskatoon-based PotashCorp said last month it expected to sell 8.3 million to 9.1 million tonnes of potash this year.
The shutdowns involve time for maintenance and do not require layoffs, the company said in a statement.
Read Also
U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
The move comes after PotashCorp last month closed its newest potash mine, the Picadilly site near Sussex, N.B., citing weak market conditions.
Prices of the crop nutrient have fallen as crop prices soften and demand slackens in key buying countries such as Brazil and India.
It is unlikely that the latest curtailments will stabilize potash prices, and PotashCorp’s decision may not be material if the company is simply advancing its usual summer maintenance period, said BMO analyst Joel Jackson in a note.
— Reporting for Reuters by Rod Nickel in Winnipeg.
