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Weekly Update: Fertilizer Stocks Show Weakness before Earnings

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Weekly performance

The week ending October 29 was broadly negative for agricultural fertilizer companies. The S&P 500 (SPY) saw a similar trend—it fell 1.2% during the week. The VanEck Vectors Agribusiness (MOO) also fell by 84 basis points last week. Below, we’ll discuss the weekly and YTD (year-to-date) performances of eight major publicly listed agricultural fertilizer companies.

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Top losers

Last week, Intrepid Potash (IPI) emerged as the top loser—its shares fell 3.6% to $1.08 per share. CF Industries (CF) followed—its shares fell 3.3% to $24.5 per share. The Mosaic Company (MOS) was next— its shares fell 2.9% to $23.8. Israel Chemicals (ICL) fell 2.7% to $3.6.

Terra Nitrogen (TNH) also fell last week by 2.1% to $104.5 per share. PotashCorp (POT) fell 1.5% to $16.5 per share. Compared to the above companies, CVR Partners (UAN) was in a better position—its shares fell 1.4% to $5 per share. Agrium (AGU) was the only company in positive territory at $93 per share—its rose by 23 basis points.

Many of the companies will release their earnings in the coming weeks. Mosaic will announce its results on November 1. Read Will 3Q16 Bring Another Fall in Mosaic’s Gross Margin? to learn more.

YTD performance

Intrepid Potash is still the top loser—its shares fell 64.8% YTD. CF Industries is also among the top losers—it fell 39.5%. CVR Partners fell 36.9% YTD. Mosaic and Israel Chemicals have fallen 16.3% and 12.8% YTD. PotashCorp is next—its shares fell 5% YTD.

While Terra Nitrogen is flat YTD, Agrium continues to remain in positive territory—it rose 5% YTD. The S&P 500 index rose 5.7%, while the Agribusiness ETF MOO rose 7.5% YTD.

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This week

Three major fertilizer companies are slated to announce their earnings. You can read the following three series to prepare yourself for the earnings:

Series overview

Fertilizer prices impact how companies perform. Fertilizer prices have been battered this year. In this weekly series, we’ll look at the fertilizer price trend. It’s waiting for a reversal. We’ll start with ammonia prices.

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