Fertilizer affordability

Recently, the Fertilizer Affordability Index has seen an upward trend. The Mosaic Company (MOS) publishes this index, and it shows the current fertilizer affordability of three key NPK (nitrogen, phosphorous, and potassium) fertilizers to key fertilizer consuming crops such as corn, wheat, and soybean.

Are Rising Prices Affecting Fertilizer Affordability?

Weekly movements

Last week, the Fertilizer Affordability Index moved sideways to 0.72 from our last update two weeks ago for the week ending December 15. According to Mosaic, the affordability index is indexed to one in the base year of 2005. A level below one means that fertilizers are fairly affordable compared to the base year.

The current affordability index is well below one. However, the affordability index has been rising and is up from 0.66 in the corresponding quarter a year ago in 2017, which indicates that while the fertilizer affordability remains below the base year, it is getting tighter compared to the prices of key crops such as corn, wheat, and soybean.

Tighter fertilizer affordability may prove negative for companies (MOO) such as CF Industries (CF), Mosaic (MOS), Terra Nitrogen (TNH), and Israel Chemicals (ICL) as farmers ration their budget.

The tighter affordability may have come from rising fertilizer prices, which we discussed earlier in this series. Make sure to check Market Realist’s Agricultural Fertilizer page for the latest updates.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings

WRITTEN BY Adam Jones

On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.