Comments on: Potash price crucial to how far BHP can stretch http://blogs.reuters.com/breakingviews/2010/08/24/potash-price-crucial-to-how-far-bhp-can-stretch/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: hiddenlevers http://blogs.reuters.com/breakingviews/2010/08/24/potash-price-crucial-to-how-far-bhp-can-stretch/comment-page-1/#comment-3439 Wed, 25 Aug 2010 16:54:46 +0000 http://blogs.reuters.com/columns/?p=3858#comment-3439 BHP won’t buy POT now because now Potash is fairly priced. I used the Agricultural Commodities historical data to shed some light on the BHP maneuver.

I charted POT against Agricultural Commodities. The 6 month chart tells a good story:

http://www.hiddenlevers.com/hl/u?c06dMA

Look how poorly POT was doing against its economic backdrop. BHP saw this, and the second it put a bid in, POT rocketed up to reflect the move in underlying commodities since July. The trend in Agro Commodities seems to be pointing up, so you know why Potash would decline BHP’s offer.

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