The week ending January 27, 2017, was broadly positive for agricultural fertilizer stocks. The VanEck Vectors Agribusiness ETF (MOO) rose by 64 basis points during the week, while the S&P 500 (SPY) rose by ~130 basis points.
Let’s take a look at the weekly and YTD (year-to-date) performances of eight major publicly listed agricultural fertilizer companies.
Fertilizer stocks’ performance
Out of the eight stocks in the above chart, five ended last week higher and three ended lower. Intrepid Potash (IPI) emerged as the top gainer. Its stock rose 20.1% to $2.15 per share. Terra Nitrogen (TNH) rose 5.9% to $113.6 per share. CF Industries (CF) rose 3.6% to $36.5 per share, while CVR Partners (UAN) rose 2.8% to $6.6 per share. Israel Chemicals (ICL) ended last week in positive territory with a gain of 2.4% to $4.6 per share.
PotashCorp announced its 4Q16 earnings last week. Read PotashCorp Reports 4Q16 Earnings: Stock Falls 3% to learn more.
So far this year, the above eight companies are in positive territory YTD (year-to-date). Last week, CF Industries took the lead with its 14.6% YTD return. Israel Chemicals has returned 13.5% YTD. Terra Nitrogen was third with a YTD return of 8.3%, while Mosaic (MOS) was next with a YTD return of 6.4%. CVR Partners had a return of 4.9%, while Agrium returned 4.1%. PotashCorp and Intrepid Potash both rose 3.4% YTD. MOO rose 4.3%, while the S&P 500 rose 1.6% YTD.
Fertilizer prices are key to these companies’ performances. In this weekly series, we’ll provide an update on fertilizer price movements for the week ending January 27, 2017.
Let’s start by looking at last week’s price movements for nitrogen, phosphate, and potash fertilizers.