Question-and-Answer Session
Operator
(Operator Instructions).
Stephen Wilson
We have some noise in the background, Katie. Hello? Hello, Katie?
Operator
Your first question comes from the line of Steve Bryne from Merrill Lynch. Please proceed.
Steve Byrne - Merrill Lynch & Company
Hi, thanks. Tony, can you help me understand why you had a mark-to-market gain in the natural gas derivative?
Anthony Nocchiero
Yeah. I mean, it relates to where we were on our overall swap program as a function of our forward sales program.
Steve Byrne - Merrill Lynch & Company
But at the end the calendar year, wouldn't the forward strip have been at level below, where you locked in gas?
Anthony Nocchiero
I'm sorry. Yeah, you've got to look at the... remember, you have to look at the inventory balances, and what it was, was a positive change in two loss positions.
Steve Byrne - Merrill Lynch & Company
Okay.
Anthony Nocchiero
It's a difference between two loss positions and on the balance sheet and the loss decrease, so it was a gain.
Steve Byrne - Merrill Lynch & Company
Okay. And then regarding the write down on the potash, it would suggest that your write down here is roughly $160 a tone. Does that suggest that given where corn bell potash prices are now that you secured that those imports of potash last summer, somewhere near the $1000 a ton price?
Stephen Wilson
No, Steve, we prefer not to give you the specific prices. But we have marked them down to what we view to be the market price at which we'll move the product.
Steve Byrne - Merrill Lynch & Company
Okay.
Anthony Nocchiero
And we did buy the product in the fall.
Steve Byrne - Merrill Lynch & Company
Okay.
Anthony Nocchiero
But the acquisition costs be won't that high.
Steve Byrne - Merrill Lynch & Company
Okay. And then just at your forward pricing program that you had at the end of when you reported third quarter results versus where they are now and how much gas you have locked in at the end of the year. It looks like your order activity really slowed to a crawl in November and December and may have picked up in January. Is that a fair characterization?
Stephen Wilson
Well, it's certainly slowed to crawl near the end of the year as we saw the free falling prices. Customers were exhibiting rational behavior, they were waiting to see what's going to happen when things will get to the bottom. And when things get to the bottom, our customers perceive that the bottom is nearby then they become interested in committing.
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