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Fertilizer Prices Keep Extending Losses into July

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Sector performance

For the week ended July 7, the agribusiness sector performed broadly in the negative territory. The benchmark VanEck Vectors Agribusiness ETF (MOO) ended the week 27 basis points lower than where it started the week.

The broad market index S&P 500 (SPY) also ended last week 61 basis points lower. Of the eight fertilizer stocks that we’ll discuss below, six ended last week in negative territory.

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Weekly performance

CVR Partners (UAN) emerged as the top loser last week, with its stock falling 3.6% to $4.7, followed by Agrium (AGU), which fell 2.4% to $91.5 per share.

Intrepid Potash (IPI) fell 2.2% to $2.2 last week, while PotashCorp (POT) fell 1.9% to $16.5 per share. Mosaic (MOS) and Terra Nitrogen (TNH) fell 1.7% and 1.1%, respectively.

On the other side, Israel Chemicals (ICL) emerged as the top gainer last week, with its shares rising 4.7% to $4.3, followed by CF Industries (CF), which rose 2% to $27.8.

YTD performance

The above chart shows how most fertilizer stocks have been struggling in 2017. CVR Partners has fallen 45% YTD (year-to-date), followed by Mosaic, which has lost 23.5% YTD. Terra Nitrogen stock has lost 17.6% so far this year, while CF has fallen 12.5% YTD. PotashCorp and Agrium are both down ~10% YTD.

By contrast, Intrepid Potash is by far the top gainer, having risen 15.4% YTD. Israel Chemicals has gained 12.2% so far this year.

In this installment of our weekly series, we’ll update you on the latest price movements of the fertilizers used most widely by farmers around the world, bearing in mind that fertilizer prices are the most important drivers of the above companies’ profitability. We’ll start with granular urea prices.

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