Inour Chicago Cubs view margins have not reached a level

Inour reviews baseball view, margins chicago cubs retells have not reached a level that justifies the cost of agreenfield mine. Recently settled contract prices have made this investmenteven more challenging.We believe these issues further enhance the window of opportunity for ourexpansion projects in Saskatchewan and New Brunswick, which will be completedin a shorter time frame and at a significant discount to the estimated cost ofa greenfield mine. Buildingpotash capacity requires considerable cost and a long time to execute, sosufficiently high potash margins are necessary to justify the investment. If customerconfidence and normal buying patterns return, grain markets could reflect bothrising demand and global production shortfalls due to poor fertility practicesduring this recession. Higher crop prices could once again motivate farmers tomaximize production and could drive potash sales volumes to the high end ofthat range next year.

At this level we believe global producers would be nearoperational capacity.We expect that the potash inventories built by producers during the downturnwill supply immediate needs, but with low inventories in the broader supplychain, warehouses are expected to empty quickly as demand returns baseball managers . The current circumstances are even more dramatic because of theextent and duration of destocking that has occurred chicago cubs ringtones . With more than 14 milliontonnes of global potash production curtailed so far this year, we expect astrong rebound in 2010 potash sales volumes to tighten supply/demandfundamentals.We anticipate global potash demand in 2010 to be in the range of 55-60 milliontonnes, depending on the pace of improvement in the world economy and relatedcrop commodity prices chicago fire . If economic recovery lags and consumers, includingthose buying grain and oilseeds, remain cautious, the need to replenish soilfertility could drive a rebound to the lower end of the range cubbies . Fertilizer dealers make money by buying whenthey believe they can capture a positive margin, and many were shaken by theeconomic downturn and the rapid decline in phosphate and nitrogen pricing.

Wehave seen India resume potash purchasing, which we expect will be followed bysignificant interest from the large Brazilian market, and we anticipate thatcustomers worldwide will commit with confidence to new orders and initiate thelengthy process of refilling the potash pipeline.We believe this situation could be similar to 2006, when extended contractnegotiations pushed significant potash sales back to the latter half of theyear and, more importantly, were the precursor to the strong demand rebound in2007 and 2008 baseball ticket . While these prices are 26 percent below the record contractprices of last year, historical and relative context is important: this is oneof the worst economic downturns we have ever seen, and we have just exited afertilizer year in which global potash shipments were more than 30 percentlower than the previous year.We believe a return to normal potash demand - and demand growth - will bedriven not only by the need to replenish soil nutrients but also by renewedcustomer confidence in pricing cubbies caps . Recently announced contractsbetween major potash suppliers and India's fertilizer buyers demonstratecustomer understanding of the premium value and very different long-termsupply/demand fundamentals for potash cubbies hat . In contrast to phosphate and nitrogenrealized prices, which have reverted near 2006 levels, India's recent potashsettlements equate to a level nearly triple our realized offshore prices ofthree years ago chicago cubs . In some regions, nutrients resident in the soil andexceptional growing conditions can temporarily distract attention from thisunderlying issue, but unsustainable fertilizer practices cannot continue ifthe world's need for food is to be met.The imminent need for improved soil fertility around the world is beginning tobring much-needed clarity to nutrient markets. Webelieve the weak potash market environment of the past 10 months isunsustainable, and temporary in nature. With our focus on the long-term needfor more potash and our unique ability to deliver that growth, our commitmentto these projects has not changed.OutlookGiven the essential role fertilizer plays in food production, demand forpotash and phosphate cannot be deferred indefinitely, as removing essentialcrop nutrients from the soil today means more must be applied tomorrow.

Withrising populations, fundamental shifts in dietary practices to more meatprotein and fruits and vegetables, along with increasingly limited land andwater availability, we anticipate long-term pressure on the global foodsystem baseball tickets . We believe that economic uncertainty has resulted in inadequatenutrient replacement to soils in all major agricultural regions, creating avoid that must be filled chicago cubs ringtones . Provincial mining tax accrualsmade earlier in the year based on higher annual sales volume estimates werereduced during the second quarter in conjunction with lower tonnage forecasts.In the second quarter the strengthening Canadian dollar resulted in therecognition of a foreign-exchange loss of $37.9 million, more than half ofwhich was a translation loss.We continued to invest heavily in potash debottlenecking and expansionprojects at five of our facilities, which made up the majority of the $399.6million spent on additions to property, plant and equipment in the quarter chicago fire . Lower gas prices along withdepressed industrial demand resulted in ammonia and urea prices falling 50percent and 48 percent, respectively, quarter over quarter .