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Key Fertilizer Updates for the Week Ending November 24

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Sector performance

The VanEck Vectors Agribusiness ETF (MOO) ended last week 1.6% higher, while the S&P 500 Index (SPY) was up by 80 basis points during the week. Last week was mostly positive for fertilizer stocks with six of the eight stocks discussed below ending the week in positive territory.

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Stock performance

Last week, Intrepid Potash (IPI) emerged as the top gainer with its stock closing 5.6% higher at $3.78 followed by Mosaic (MOS), which closed 3.6% higher at $24.1. Agrium (AGU) was next with a weekly gain of 1.8%, closing at $108.5, while PotashCorp (POT) also closed 1.8% higher at $19.5.

CF Industries (CF) also ended the week in positive territory with a weekly gain of 45 basis points to close at $36.5, followed by Israel Chemicals (ICL), which closed 26 basis points higher at $4.

The two companies that ended last week in the negative territory include CVR Partners (UAN), which fell by 97 basis points to $3.16, and Terra Nitrogen (TNH), which fell by 26 basis points to $81.5.

PotashCorp and Agrium are awaiting a merger, which is expected to be complete by the end of 4Q17. For recent updates on the progress of the merger, read our series PotashCorp-Agrium Revisited: Key Updates.

YTD performance

YTD (year-to-date), Intrepid Potash continues to be the top gainer with a return of 81%, followed by CF Industries, which has returned 13%. Agrium was next with a YTD gain of 8.5%, followed by PotashCorp, which rose 7% over the same period.

The remaining four stocks have returned losses so far this year with CVR Partners emerging on the top with a loss of 51.7% YTD, followed by Terra Nitrogen, which delivered losses of 22.8%. Mosaic was next with a loss of 19.2%, and Israel Chemicals had losses of 3.9%.

Series overview

In the following parts of this series, we’ll discuss the weekly price performance of key fertilizers such as urea, diammonium phosphates, and potash. Towards the end, we’ll look at the fertilizer affordability trend.

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