Finance & Business World

SASKATOON–A slow start to the U.S. planting season and extended negotiations with offshore buyers has resulted in another output reduction this year at Potash Corporation of Saskatchewan Inc.

The Saskatoon-based fertilizer giant, the world's largest potash producer, says it will reduce its 2009 output again, this time by 800,000 tonnes.

That brings curtailments this calendar year to 4.7 million tonnes and total curtailments to 5.5 million tonnes since August 2008.

An announcement posted on Potash Corp's website says it does expect demand to return in the second half of 2009 as Brazil approaches its major fertilizing season and buyers in India and China return to the market credit reports.

Potash Corp.'s chief executive said earlier this month that the company may resort to selling fertilizer to China on the spot market if the two sides can't renew a three-year supply deal that expires soon.

China represents about 12 per cent of Potash Corp. total business.

Potash Corp. shares were down $8.81 or seven per cent at $112.19 before midday on the Toronto Stock Exchange.

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