Potash Corp. Expects to do Strong Business in China and India in 2009

Canadian-based Potash Corp. (POT.TO) CEO Bill Doyle said on a conference call that he expects the company to do solid business in China and India in 2009.

Business in the U.S. on the other hand will be slow for about four to six months until the spring planting seasons starts, said the CEO of the world's largest fertilizer company.

Boyle added that demand for corn fertilizer should outpace supply in the years to come. The major variable is whether corn prices can stay above $4 a bushel. Other than that, things are looking good for the company. At this time for the 2009 corn crop it stands at $4.30 a bushel.

According to Doyle, he also thinks some of his competitors may unexpectedly find themselves in highly leveraged positions, which would give them a chance to look into mergers & acquisitions with them.

The company has been exploding in growth the last couple years, as in the third quarter alone it has outperformed last year's record-breaking totals.

Surprisingly the company has suffered a huge decline in stock in relationship to funds selling off their stakes in order to get more liquid, as well as concerns commodities will be down for some time. The funds are wrong on the commodity long-term outlook, but they're in a forced liquidation stage and it will take some time before they have the funds to invest in commodity-related companies.

For China and India it confirms that while growth is slowing there, the shear size and needs of the countries will keep them growth markets for years to come.