With a drought spreading across a good portion of the country, it's probably a good time to take a closer look at large-cap potash stocks.
That's because most potash or "potassium chloride" will ultimately be turned into fertilizer and when a drought hits, crop prices riseómeaning farmers are going to want to use more fertilizer to try and increase production to take advantage of higher prices. That also makes fertilizer and hence the potash business a bit cyclical with big ups and downs.
So should you go with large-cap potash stocks like Potash Corp./Saskatchewan (POT) or Mosaic Co (MOS) for the long term or should you bet on a small-cap potash stock like Intrepid Potash (IPI)?. . .View Full Article