President Trump says the U.S. is working on a deal to buy potash from Belarus instead of Canada, and a fertilizer expert says it’s a negotiation tactic.
Josh Linville with StoneX Group says there’s no benefit to an agreement between the U.S. and Belarus when it comes to potash imports; there’s not enough.
“Their max arrivals of potash in the U.S. marketplace is about 750,000 tons,” he says.
Linville says the way the product gets to market isn’t reliable.
“Their only outlet valve is shipping product through Russia. It’s more expensive, more timely and constrained. They can’t move it like they used to be able to do through Lithuania.”
Linville says he thinks this is more of a negotiating tool against Canada, as the two countries continue their trade war.
“We know potash has been discussed from both sides of the border, where both are jockeying and trying to get a better deal. Ultimately, I don’t see there being a major impact.”
Canada supplies the U.S. with 80 to 90 percent of its potash imports.
Linville was part of an input panel discussion at the Ag Outlook Forum.
The Ag Outlook Forum is sponsored by the Agricultural Business Council of Kansas City and Agri-Pulse.
