For the week ending January 5, 2018, the VanEck Vectors Agribusiness ETF (MOO) ended almost 2% higher, while the S&P 500 Index (SPY) also had a strong week with a 1.7% increase. Most of the fertilizer stocks discussed below also ended in the positive territory last week with CVR Partners (UAN) emerging as the top gainer.
CVR Partners rose ~14% throughout the week to close at $4.04 followed by Terra Nitrogen (TNH), which closed 5.3% higher at $85.8 per share. The new year also saw the delisting of two ticker symbols, PotashCorp (POT) and Agrium (AGU), as they merged under the new company name Nutrien (NTR) and a new ticker symbol. Nutrien rose 1.8% in the first week of 2018 to close at $55.7 for the week ending January 5.
CF Industries (CF) was also one of the gainers with its stock rising by 1.2% to close at $43.7 per share. Israel Chemicals (ICL) was next with a weekly gain of 1% to close at $4.11 per share for the week ending January 5. Mosaic (MOS), which delivered losses of 13% last year ended last week in the positive territory with its stock rising by as much as 0.8% to $26.9 per share.
In contrast to the above companies, Intrepid Potash (IPI) was the only one to end in the negative territory last week with its stock falling by 1.5% to close at $4.6 per share.
Last year’s best and worst performers
Last year, Intrepid Potash was the top gainer among the above companies, returning 129% from stock appreciation. On the other hand, CVR Partners was among the worst performers with a loss of 48% in 2017.
In this series, we will discuss the price performance of key fertilizers that drive the earnings of the above companies. We will begin with urea price movements.