In the week ending January 19, the VanEck Vectors Agribusiness ETF (MOO) rose 1%, and the broader market S&P 500 (SPY) also ended in positive territory with a gain of 1.2%. However, most fertilizer stocks ended in negative territory during the period.
Last week, five of the seven fertilizer stocks in the above chart ended in negative territory. CVR Partners (UAN) emerged as the biggest loser with its stock falling by ~3.3% to $3.8 per share. Terra Nitrogen (TNH) followed with a decline of 2.4% to $83.7. Israel Chemicals (ICL) was next with its stock falling 0.9% to $4.4, followed by CF Industries (CF), which fell by 0.8% to $40.4 per share. Nutrien (NTR) also ended last week slightly lower by 0.1% to $53.
The two stocks that ended last week in positive territory include Intrepid Potash (IPI), which rose 4.2% to $4.2 per share, and Mosaic (MOS), which rose 3.3% to $26.5 per share last week. Let’s look at how these stocks have performed YTD (year-to-date).
YTD, Intrepid Potash is the biggest loser in 2018 so far with a loss of 10%, followed by CF Industries, which was down by 6.4%. Nutrien was also down by 3.2% YTD, while Mosiac delivered losses of 0.5% over the same period. In contrast, the other three stocks delivered positive returns so far this year with CVR Partners up by 7.6%, followed by Israel Chemicals, which was up by 7.4%, and Terra Nitrogen, which delivered a positive return of 2.8%. The Agribusiness ETF MOO returned 3.5%, and the S&P 500 returned 4.3% over the same period.
In this series, we’ll discuss fertilizer price movement, a key driver for fertilizer stocks.