In the week ended April 15, 2016, the S&P 500 (SPY) rose by 1.9%. Overall, the week was positive for fertilizer producers.
Intrepid Potash (IPI) was the top gainer for the week, rising by 7.3%. This was followed by Israel Chemicals (ICL), which rose by 6.4%; Mosaic (MOS), which rose by 5%; and PotashCorp (POT), which rose by 4.4%.
CVR Partners (UAN) was at the bottom of the pile for the week ended April 18, 2016, rising by only 0.3%. Agrium (AGU) rose by only 0.6% while Terra Nitrogen (TNH) ended 0.9% higher from the beginning of the week.
The week that was
During the previous week, Agrium, PotashCorp, and CF Industries were downgraded by analysts despite the fact that most fertilizer stocks ended in positive territory. To learn more about this, please read Why Did Fertilizer Stocks Fall on April 14?
During the previous week, the India Meteorological Department also released its forecast for monsoons during the upcoming planting season, which occurs from June to September. The overall forecast for rainfall in India is expected to be better than normal. This was much-needed good news for some of these companies that include India as a key market for fertilizers. To learn more about this report, please read Will the Indian Monsoon Forecast Lift Fertilizer Companies?
Fertilizer prices constitute the biggest factor impacting the performance of fertilizer companies. In this series, we’ll see how NPK (nitrogen, phosphorous, and potassium) prices and the prices of raw materials changed in the week ended April 8, 2016.
Let’s start with ammonia, one of the key products for nitrogen and phosphate fertilizers.