US equities pick up steam, Sept. 28-Oct. 2

Employment data from the U.S. Labor Department showing that 142,000 new non-farm jobs were created in September — far less than the 203,000 forecast — furthered expectations that the U.S. Federal Reserve would delay raising interest rates. Figures from Bank of America Merrill Lynch showed that investors pulled US$22 billion out of U.S. equities in the third quarter of the year and put US$17 billion into U.S. Treasury funds. For the week, the Dow Jones Industrial Average rose 0.97% to 16,472.37 and the S&P 500 Index climbed 1.04% to 1,951.36. The Philadelphia Gold & Silver Index advanced 3.7% to 49.02 and the spot gold price fell US$7.90 per oz. to US$1,138.40 per oz.

With potash prices declining from US$307 to US$303 per tonne in September, it’s been a rough time for producers of the crop nutrient, and the outlook doesn’t look any better. In September, Macquarie Bank forecast average potash prices would fall to US$254 per tonne in 2016. Agrium’s shares dropped US$3.56 to US$87.96, while Potash Corp. of Saskatchewan’s shares lost US$1.31 to US$19.70 — both on no news. Potash Corp  announced that it withdrew its €41-per-share offer in May to acquire K+S Aktiengesellschaft of Germany. “Since that time, challenging macroeconomic conditions have contributed to a significant decline of global commodity and equity markets, with potash peer stocks down almost 40%,” Jochen Tilk, the company’s CEO, said in a news release. “In light of these market conditions and a lack of engagement by K+S management, we have concluded that continued pursuit of a combination is no longer in the best interests of our shareholders.”

Shares of Mosaic also fell, losing US$2.13 to US$30.14. On Oct. 1 the company announced that it had reached settlements with federal and state environmental agencies to resolve claims about how it had managed on-site waste materials at its fertilizer facilities in Florida and Louisiana. When the settlements become effective, Mosaic will invest at least US$170 million at its manufacturing facilities to modify on-site waste management and implement new procedures to recover and use resources. The company will also place US$630-million cash into a trust to support the closure and long-term care of its phosphogypsum stack systems. As part of the agreements, Mosaic will pay an US$8-million penalty and conduct two environmental projects valued at US$2.2 million.