Potash Corp sees BPC break-up as short term

IndustrialsReuters

WINNIPEG, Manitoba (Reuters) - Potash Corp of Saskatchewan Chief Executive Bill Doyle said on Wednesday he doesn't expect the breakup of Belarusian Potash Co (BPC) to last long, and he disputed predictions that the breakup would spur a steep potash price drop.

Doyle, who heads up the world's largest potash producer by capacity, was making his first public comments since Russia's Uralkali OAO exited BPC last week in a dispute with partner Belaruskali, a move that sparked a broad selloff in shares of companies that sell the crop nutrient potash.

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BPC's breakup and Uralkali's decision to maximize production spooked investors in the potash sector, where the two big players, BPC and North American potash export company Canpotex Ltd, have long matched supply to demand to support prices.

"My guess is (the breakup will last) shorter rather than longer, and the reason I say that is logic tends to prevail," Doyle said in a question-and-answer session streamed on the company's website. "I don't find too many people that self-destruct intentionally,"

Doyle said he does not see changes ahead for Canpotex and said there are no plans to alter its strategy. Potash Corp, Agrium Inc , and Mosaic Co are the members of Canpotex.

Shares of Potash Corp rose 1.3 percent in Toronto and 1 percent in New York, slightly extending gains, after Doyle's comments. As of Tuesday's close, The stock was down 22 percent in New York e since BPC's breakup on July 30.

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Gary Hill and Peter Galloway)

Potash Corp of Saskatchewan Chief Executive Bill Doyle said on Wednesday he doesn't expect the breakup of Belarusian Potash Co (BPC) to last long, and he disputed predictions that the breakup would spur a steep potash price drop.

Doyle, who heads up the world's largest potash producer by capacity, was making his first public comments since Russia's Uralkali OAO exited BPC last week in a dispute with partner Belaruskali, a move that sparked a broad selloff in shares of companies that sell the crop nutrient potash.

BPC's breakup and Uralkali's decision to maximize production spooked investors in the potash sector, where the two big players, BPC and North American potash export company Canpotex Ltd, have long matched supply to demand to support prices.

"My guess is (the breakup will last) shorter rather than longer, and the reason I say that is logic tends to prevail," Doyle said in a question-and-answer session streamed on the company's website. "I don't find too many people that self-destruct intentionally,"

Doyle said he does not see changes ahead for Canpotex and said there are no plans to alter its strategy. Potash Corp, Agrium Inc , and Mosaic Co are the members of Canpotex.

Shares of Potash Corp rose 1.3 percent in Toronto and 1 percent in New York, slightly extending gains, after Doyle's comments. As of Tuesday's close, The stock was down 22 percent in New York e since BPC's breakup on July 30.

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Gary Hill and Peter Galloway)