Fertilizer Became Less Affordable Last Week
The Fertilizer Affordability Index shot up last week, indicating that the affordability of fertilizers became lower compared to the base year.
Unlike nitrogen and phosphate fertilizers, potash fertilizers have seen positive momentum so far this year.
MAP (monoammonium phosphate ) prices have shown weakness in the months following March 2017 after reaching a peak of $400.
Last week, the price movements for DAP were mixed. In North America, prices at NOLA (New Orleans) rose 0.94% to $293 per metric ton.
Last week, natural gas prices at Henry Hub fell an average of 5.5% to $2.80 per MMBtu (million British thermal unit) from a weekly average $2.96 per MMBtu.
In recent weeks, urea prices have been moving positively as a result of capacity rationing by producers.
Last week was largely negative for fertilizer companies. The VanEck Vectors Agribusiness ETF (MOO) fell 2.2% week-over-week.
Despite a sales decline and lower year-over-year price realization, Agrium’s (AGU) margins saw an improvement during 2Q17.
In the earlier part of this series, we discussed how Agrium’s (AGU) shipments remained almost unchanged year-over-year yet the company’s sales saw a decline during the quarter.
Agrium (AGU) reported overall sales of $6,319 million for all of its segments combined.
Agrium (AGU) reported its 2Q17 earnings on August 9, 2017. The company posted EPS (earnings per share) of $4.03, a 1.2% fall year-over-year from $4.08 in 2Q16.
Scotts Miracle-Gro announced a 6% dividend increase to $0.53 per quarter from $0.5 per quarter. It has consistently raised its dividend in the past.
During 3Q17, Scotts Miracle-Gro’s (SMG) margins saw some expansion YoY. The company’s sales growth of 8% helped the margin expansion.
During 3Q17, Scotts Miracle-Gro’s overall sales rose 8% YoY (year-over-year) to $1.08 billion from $994 million in 3Q16.
Scotts Miracle-Gro (SMG) announced its recent earnings on August 1, 2017. The company reported EPS (earnings per share) of $2.53 without adjustments.
Intrepid Potash’s (IPI) 2Q17 margins saw meaningful improvement for its Potash segment, while the Trio segment’s margins remained under pressure.
Intrepid Potash’s 2Q17 price realizations for its Potash segment were significantly better compared to 2Q16.
Overall shipment volumes for Intrepid Potash (IPI) stood at 162,000 tons in2Q17, which fell 19% YoY (year-over-year) from 201,000 tons.
Intrepid Potash (IPI) stock had impressive growth in 2017. However, the company’s sales growth continues to remain in negative territory YoY.
As of the week ending August 4, 2017, Intrepid Potash (IPI) stock rose 26% through the week and settled at $3.83 per share.