An unexciting week
During the week ended July 8, agricultural fertilizer stocks were broadly in negative territory with the benchmark VanEck Vectors Agribusiness ETF (MOO), down by 0.31% to $47.90. In contrast, the S&P 500 Index (SPY) was up by 1.3%.
Intrepid Potash (IPI) fell by 6.9% to $1.34 last week, followed by PotashCorp (POT), which fell by 4.3% to $15.80. The Mosaic Company (MOS) fell by 4.1% to $25.50 and CVR Partners (UAN) declined by 3.3% to $8.00.
Out of the eight stocks in the chart above, CF Industries (CF) and Terra Nitrogen (TNH) were the only two that gained during the week ended July 8. CF rose by 2.6% to $24.80 and Terra Nitrogen rose by 1.4% to $109.60.
Year-to-date (or YTD), Intrepid Potash and CF Industries remained on the worst performers list, with their stocks down by 56% and 38.6% YTD, respectively. Mosaic Corporation was down by 10.3% while PotashCorp was down by 8.9% YTD. Israel Chemicals is also in the red, with -6% returns YTD.
Terra Nitrogen, CVR Partners, and Agrium are in the positive return territory, with YTD returns of 4.9%, 0.9%, and 0.34%, respectively.
Among the benchmark indexes, the VanEck Vectors Agribusiness ETF and the S&P 500 have far outperformed the above companies with YTD returns of 4.3% and 5.8%, respectively.
In this series, we’ll see how NPK (nitrogen, phosphorus, and potassium) prices and raw materials changed during the week ended July 8, 2016. Fertilizer prices are a key factor since they impact the performance of fertilizer companies. It’s important for investors to actively track fertilizer prices.