* Canpotex to sell 70,000 tonnes of potash to Sinofert
* Shares up 2.6 percent on the TSX
TORONTO, May 31 (Reuters) - Shares of Potash Corp of Saskatchewan POT.TO rose 2.6 percent in early trade on Monday after the company’s sales arm concluded a contract to supply potash to a subsidiary of China’s Sinofert Holdings Ltd (0297.HK).
Canpotex, the export arm of Potash Corp, Mosaic Co (MOS.N) and Agrium Inc AGU.TO, agreed to sell 70,000 tonnes of the crop nutrient to Sinochem Macao for a price that will not exceed $26 million, according to a regulatory filing in Hong Kong.
That would imply a price of about $370 a tonne, in line with the price agreed with Indian buyers in February, but slightly above the $350 a tonne price agreed with Sinofert earlier that month. [ID:nN08104080] [ID:nN19110956]
Analysts believe the new agreement indicates that pricing momentum for potash is slowly beginning to build.
Potash emerged from obscurity a few years ago when high grain prices, tight supplies and strong demand drove prices above $1,000 a tonne from below $150.
Potash prices have since retreated as farmers, hit by the credit crisis and falling grain prices, reined in their use of the nutrient, but demand this year has already bounced back significantly.
Shares of Potash Corp were up C$2.72 at C$107.15 in midday trade on the Toronto Stock Exchange. (Reporting by Euan Rocha; Editing by Frank McGurty)