The potash market's long-awaited revival is nigh with buyers already returning, America's largest miner of the nutrient has said, while reporting further earnings damage to the sector slump.

The US potash market, which has seen its worst slump in demand for more than 20 years, showed signs of a "modest recovery" in the July-to-September quarter, intrepid Potash said.

"We believe that the market is in a bottoming process and have begun to see some initial hopeful signs, with selective buyers returning," the group said.

The last remaining hurdle to a rebound was rain which had, by slowing the US corn and soybean harvests, narrowed the planting window, typically a period of higher fertilizer use.

While this meant potash applications would not until the spring return to "normal or near-normal" levels, the relatively tight dynamics in grain markets would underpin the recovery.

"Farmers will replace the significant nutrients they have withdrawn from their soil and may return to more historical consumption levels going forward," chief executive Bob Jornayvaz said.

Growing consensus 

Intrepid's forecasts appear in line with a growing consensus among potash groups of a recovery in the spring after a year in which cuts in farm spending, forced by lower grain prices and tight credit, have fostered sharp reductions in earnings from, in many cases, record highs.

However, Intrepid's estimates may be viewed with particular interest given that it has been one of the downbeat on the sector's recovery so far, quashing in August growing industry expectations of a rebound.

Many rivals have been proved wrong on earlier revival hopes. Canada's PotashCorp, the sector leader, admitted last month admitted the downturn had "lasted far longer than we anticipated".

Nonetheless, some analysts believe that a revival is only likely when China, the world's biggest potash consumer, signs long-awaited contracts for renewed supplies, a deal viewed as likely to end uncertainty of how low the price of the nutrient will fall.

Price cut 

Intrepid achieved $505 a tonne for its potash in the third quarter, down from $687 a tonne a year before.

By weight, sales near halved to a little over 100,000 tonnes, leaving revenues down 55% at $66.4m.

Earnings slumped 81% to $9.52m.

Intrepid shares stood 1.5% lower at $26.95 in lcunthime deals in New York.