Week ending September 9
The week ending September 9 was broadly negative for fertilizer stocks as well as the overall market. The VanEck Vectors Agribusiness (MOO) fell 3.4% during the week, while the S&P 500 Index (SPY) was also down by about 2.4%. In this part, we’ll discuss how some of the major agricultural fertilizer companies fared last week.
Last week, the Mosaic Company (MOS) emerged as the top loser—it fell by 8.4% to $27 per share. PotashCorp (POT) was next—its stock fell 5.7% to $17 per share. Similarly, Israel Chemicals (ICL) fell 5.6% to $4 per share last week. All of these three companies have heavy exposure to potash or phosphate fertilizers unlike CVR Partners (UAN)—it only has exposure to nitrogen fertilizers. CVR Partners fell 5.2% last week.
Intrepid Potash (IPI), which has been troubled lately due to sinking potash prices, fell by 5% to $1.3 per share. Read Intrepid Potash: What Lies ahead for This Battered Stock? to learn more.
CF Industries (CF), which also only has exposure to nitrogen fertilizers, fell 3.6% to $25 per share, while Agrium (AGU) fell 3% to $95.2 per share. Terra Nitrogen was impacted the least—its stocks fell by 1% to $115.6 per share. Now, let’s see how these stocks have performed YTD (year-to-date).
Among the eight agricultural fertilizer companies in the above chart, Intrepid Potash, CF Industries, and CVR Partners were the worst performers—they lost 56.7%, 38.3%, and 28.4% of their values YTD (year-to-date), respectively. Mosaic and PotashCorp are down 5% and 2% YTD, while Israel Chemicals is down by 1.9% YTD.
Terra Nitrogen and Agrium are the only two companies that have a positive return YTD—their stocks rose 10.7% and 7% YTD.
What’s in this series?
Fertilizer prices are one of the key drivers of fertilizer stocks. Investors and analysts watch fertilizer prices closely.
In this weekly update series, we’ll see how nitrogen, phosphorus, potassium, and nitrogen raw material prices changed during the week ending September 9, 2016. We’ll start with ammonia prices.