Fertilizers Were Affordable for the Week Ending June 23
According to the Fertilizer Affordability Index, 2017 has been one of the most affordable years for fertilizers. Mosaic issues the index.
For the week ending June 23, potash prices remained broadly flat to negative. Muriate of potash is one of the most popular potash fertilizers.
Last week, MAP (monoammonium phosphate) prices in Brazil continued to trend downwards week-over-week. MAP prices were still weak.
Last week, DAP (diammonium phosphate) price movements were broadly flat to positive. DAP prices are weak, which puts pressure on phosphate producers.
Last week, natural gas prices at Henry Hub rose by an average of 1.5% week-over-week to $3.03 per MMBtu from $2.98 per MMBtu.
Prilled urea prices followed a downtrend last week as well at the location in Yuzhny, Ukraine. Prices fell as much as 1.6% week-over-week.
The week ending June 23 was broadly mixed for fertilizer stocks—four out of eight companies ended the week in positive territory.
Most of the world’s potash reserves are concentrated in Canada and Russia. PotashCorp (POT) in North America is one of the largest and lowest-cost producers of potash fertilizers.
For phosphorous fertilizers, 2018 will be the year in which the biggest capacity additions will occur, according to PotashCorp (POT).
In this article, we’ll discuss the outlook for the capacity additions of ammonia, the fundamental nitrogen fertilizer, in the near term.
Most major fertilizer stocks, including PotashCorp, The Mosaic Company, CF Industries, and Agrium, have underperformed both SPY and MOO year-to-date.
Agrium boasts one of the largest agricultural distribution networks in North America.
In September 2016, PotashCorp (POT) and Agrium (AGU) announced a merger in which the combined company would consolidate under a new name.
Of the 18 analysts surveyed by Reuters, three have given Monsanto (MON) a “strong buy,” and seven have given it a “buy” for the next 12 months.
For the upcoming 3Q17, Wall Street analysts are estimating that Monsanto will report EPS of $1.77, which would be an 18.0% fall year-over-year from $2.17.
As of June 22, 2017, Monsanto was trading at a forward PE multiple of 24.0x, which is significantly higher than its recent low of 20.8x in December 2016.
For the upcoming 3Q17, Wall Street analysts are estimating that Monsanto’s EBITDA will be $1.3 billion compared to $1.5 billion in 3Q16.
Monsanto’s (MON) gross margins over the past four fiscal years have averaged around 53.0% as a percentage of sales annually.
For the upcoming 3Q17, analysts’ consensus sales estimate for Monsanto (MON) is $4.17 billion, which will be a slight fall from $4.2 billion in 3Q16.
Monsanto (MON) is set to announce its 3Q17 earnings on June 28, 2017, before the market opens. The consensus estimate for Monsanto’s EPS is $1.77.