Potash is an impure form of potassium carbonate, and has been used since the 1300s in the manufacture of glass and soap, and as a fertilizer. Fertilizers that contain it improve crop yield by assisting plants in absorbing nitrogen and using water and sunlight more efficiently. It also helps plants fight insects and disease.
Companies highly tied to potash include Mosaic (MOS), Agrium (AGU), Intrepid Potash and Potash Corp. (POT).
Market Vectors Global Agribusiness (MOO) traded higher today, based largely on the analyst’s forecast, as the fund’s top two holdings are potash companies: Mosaic is 8.1%, while Potash Corp. is 8.4%. MOO is down 2.1% year-to-date.