Intrepid Potash Inc
Sales Drivers and What to Expect for Fertilizer Companies
The world has a problem that’s actually good for the fertilizer industry. This is the world’s population, which is ever-growing, as is food consumption.
Potash Prices Were Flat to Positive Last Week
In the Cornbelt region of the US, the potash prices rose by 31 basis points to $289 per metric ton from $288 per metric ton.
Fertilizer Prices for the Week Ending November 2
The week ending November 2 was broadly positive for the agribusiness sector. The VanEck Vectors Agribusiness ETF (MOO) rose ~4.5%.
How Urea Prices Performed Last Week
In the week ending October 26, overall urea prices were broadly negative.
How Fertilizer Stocks and Prices Moved Last Week
Last week, the overall agribusiness sector was broadly negative. The VanEck Vectors Agribusiness ETF (MOO) fell ~4.9%.
Fertilizer Affordability Still Largely Unchanged Last Week
Last week, which ended October 12, fertilizer affordability was unchanged week-over-week.
Potash Prices Recorded Strong Gains Last Week
Potash prices in Brazil rose the most last week with a rise of 2.3% to $357 per metric ton from $349 per metric ton.
Fertilizer Affordability Pressure Eased Last Week
While the Fertilizer Affordability Index was below one, it’s still higher compared to the average levels observed since January 2016.
Are Fertilizers Becoming Less Affordable?
Fertilizer affordability affects sales volume for fertilizer companies (NANR) such as Mosaic (MOS), Nutrien (NTR), CF Industries (CF), and Intrepid Potash (IPI).
Are DAP Prices Outside the US Reversing?
DAP (diammonium phosphate) prices have been rising lately.
Fertilizer Prices and Stocks Are on Pause: What’s Going On?
Last week, which ended September 7, the VanEck Vectors Agribusiness ETF (MOO) fell 1.8%, while the S&P 500 Index fell 1%.
How Higher Energy Costs outside the US Benefited CF Industries
In Europe, the cost of natural gas rose by 53% year-over-year as of June 2018.
How CF Industries Fared in the Second Quarter
CF Industries reported sales growth of 16% year-over-year in the second quarter due to the increase in realized fertilizer prices across its five segments.
Fertilizer Prices Take a Pause: Weekly Update
The fertilizer sector remained under pressure between August 3 and August 13, with the benchmark VanEck Vectors Agribusiness ETF (MOO) declining 2.4%
Expectations for Global Potash Fertilizer Demand
The potash market was no different than nitrogen and phosphate. Potash prices were depressed due to oversupply.
Nutrien Pops on Second-Quarter Earnings
Nutrien (NTR) reported its second-quarter earnings on August 1 after the market closed.
MAP Prices Made New Highs Last Week
MAP (monoammonium phosphate) prices continued to inch higher last week and hit new highs.
Is This Why CF’s Stock Has Rallied?
Like CF Industries’ (CF) sales, its margins are also expected to expand YoY (year-over-year) in Q2 2018 and the next four quarters.
Intrepid Potash’s Second-Quarter Sales Estimate
In the near term, analysts’ estimates for Intrepid Potash’s (IPI) sales fail to show a positive momentum.
What to Expect from Intrepid Potash’s Second-Quarter Earnings
Intrepid Potash (IPI) is set to release its second quarter 2018 earnings on August 1. Analysts are estimating EPS of $0.04.
Nutrien’s Retail Business and Agrible’s Technology Platform
Agrible’s technology gives a digital dimension to farming activity by driving efficiency in decision-making.
Update: July 13 Fertilizer Stocks and Price Movements
Last week, which ended July 13, was broadly negative for the agribusiness sector. The broader market index was positive.
Potash Prices Stay High
In recent weeks, potash prices have been rising and hitting YTD (year-to-date) highs.
A Review of Fertilizer Prices Last Week
In this series, we’ll look at key NPK (nitrogen, phosphorous, and potassium) fertilizer prices last week.
Potash Prices Rose in Week Ended June 29
Last week, potash prices in the NOLA (New Orleans) region of the United States rose 1.6% week-over-week to $235 per metric ton.
How Potash Prices Fared Last Week
Last week, potash prices were also broadly positive and managed to make new highs so far year-to-date.
Fertilizer Stocks Struggled on June 25 amid the Trade War
On June 25, the stock market continued to bleed due to risks from the escalating trade. The S&P 500 Index (SPY) fell almost 1.3%.
How CF Industries’ Forecasts Compare to Valuations
CF Industries’ valuation multiples have risen across the board since February 2016 and have broadly moved sideways since then.
What the Future Could Hold for CF Industries Stock
CF Industries (CF), one of the major nitrogen producers in North America, has had a bumpy ride since 2015.
Is Stephens Getting More Bullish on Intrepid Potash?
Intrepid Potash (IPI) reported its earnings on April 24 before the market opened.
Why Mosaic’s Sales Could Climb in 1Q18
For 1Q18, Mosaic is estimated to post $1.8 billion in sales, which would represent a 12% increase from $1.6 in 1Q17.
Snapshot: CF Industries Reports Its 1Q18 Earnings
CF Industries (CF) reported its 1Q18 earnings on May 2, after the market closed.
How Did Potash Prices Perform Last Week?
While nitrogen and phosphate prices at some locations experienced a weekly increase, potash prices were broadly flat to negative week-over-week.
Will CF Industries See Operating Margin Growth in 1Q18?
For 1Q18, CF Industries’ EBITDA (earnings before interest, tax, depreciation, and amortization) are estimated to grow year-over-year by 22% to $333 million from $272 million a year ago.
Fertilizer Price Movements for the Week Ended April 20
Last week, most fertilizer stocks ended in positive territory. Intrepid Potash (IPI) was the biggest gainer, rising 4.3% to $4.20.
Potash’s Price Movements in the Week Ended April 13
Last week, potash prices remained strong with overall flat to positive movement. Prices in Brazil and Southeast Asia remained particularly strong week-over-week.
DAP Price Update for the Week Ended April 6
In the week ended April 6, DAP (diammonium phosphate) prices were broadly flat to negative.
Potash Prices Were Strong Last Week
In the week ending March 30, 2018, potash prices were broadly flat to positive. Last week, the prices were also strong YoY (year-over-year).
MAP Prices Were Mixed in the Week Ending March 30
In the week ending March 30, 2018, MAP prices in Brazil remained flat week-over-week at $426 per metric ton from a week ago.
Fertilizers Remained Affordable Last Week
The Fertilizer Affordability Index rose slightly to 0.67x last week from 0.66x a week ago. The index level stood at 0.7x a month ago and 0.61x a year ago.
Potash Selling Prices Showed Strength in 4Q17
Intrepid Potash (IPI) saw the steepest increase in prices year-over-year by ~34% to $224 per metric ton from $168 per metric ton a year ago in 4Q16.
Which Producer Saw the Highest Potash Shipments in 4Q17?
Overall shipments in 4Q17 for five companies fell ~13% year-over-year.
Phosphate Prices Continued to Strengthen Last Week
Last week, phosphate prices for both DAP (diammonium phosphate) and MAP (monoammonium phosphate) continued their upward momentum.
Analysts’ Ratings for Major Agribusiness Stocks: February Update
So far this year, some major agribusiness stocks, particularly in the fertilizer sector, have performed poorly.
Analyzing Potash Fertilizer Prices for the Week Ending February 16
In the week ending February 16, potash prices were broadly flat to positive compared to a week ago.
How Potash Prices Performed Last Week
In the week ending January 26, potash prices at the locations discussed below were broadly flat to positive and remained strong compared to levels observed a year ago.
What Scotts Miracle-Gro Could Gain from Tax Cuts
SMG said it intends to pass on the benefits from tax savings to its employees by increasing salaries and through other programs.
A Look at Potash Prices in the Week Ending January 19
Potash prices remained strong in the week ending January 19.
Analyzing Potash Prices in the Week Ending January 12
In Brazil, potash prices were flat at $281 per metric ton in the week ending January 12.
Potash Prices Trend Upwards in the 1st Week of 2018
The potash fertilizer prices for both granular and standard grade were comfortably higher compared to the levels observed last year around the same week.
How Fertilizer Prices Moved in the Week Ending January 5
For the week ending January 5, 2018, the VanEck Vectors Agribusiness ETF (MOO) ended almost 2% higher, while the S&P 500 Index (SPY) rose 1.7%.
Intrepid Potash’s Earnings Rose in 2017
Intrepid Potash (IPI) shifted its focus to produce trio. Besides trio, the company continues to diversify its income sources.
Why Intrepid Potash Stock Doubled in 2017
Intrepid Potash was one of the top performers in 2017. Its stock rose ~127% YTD from $2.1 on January 3, 2017, to $4.72 at the closing on December 28.
A Review of CF Industries’ Margins
In the earlier parts of this series, we saw how CF Industries (CF) sales performed as a result of movements in fertilizer prices and shipment volumes.
What Investors Are Paying for Agribusiness Stocks: Part 2
The remaining companies In this part, we’ll compare the five remaining agribusiness companies’ valuation, again using forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) multiples. Valuation multiples As shown in the above chart, the remaining companies’ valuation multiples have risen in the last two years. At 18.3x, FMC (FMC) was trading at a premium to the peer […]
Analysts’ Estimates for Agribusiness Companies’ Earnings in 2018
Earnings per share Earlier, we discussed major agribusiness companies’ earnings, which have mostly fallen over the years. In 2018, their earnings are expected to rise. Next-12-month earnings As shown in the above chart, agribusiness companies’ NTM (next-12-month) EPS (earnings per share) are expected to improve year-over-year. FMC’s (FMC) EPS are expected rise 90% to $4.70, Agrium’s […]
Could Potash Prices Continue to Rise in 2018?
Potash in 2018 Earlier in this series, we reviewed potash prices in 2017. We saw that prices rose for key players in the second half of 2017. Could this momentum continue in 2018? Factors driving potash prices Prices are driven by supply and demand. Whereas for fertilizers (XLB), global demand usually grows at a stable rate, this […]
What 2017 Meant for Potash Producers
Potash fertilizers Most of the fertilizer companies we’ve discussed in this series sell all or some of the three NPK (nitrogen, phosphorous, and potassium) macronutrients. To learn more about these macronutrients’ key role in agriculture, read Agricultural Fertilizer Industry: Your Comprehensive Overview. In this part, we’ll look at what 2017 meant for potash producers. Price trends […]
Potash Price Update for Week Ended December 15
Last week, granular potash prices at NOLA (New Orleans) rose 1.3% to $207 per metric ton from $204 per metric ton a week ago.
Tracking Potash Price Movements Last Week
Last week, which ended December 8, 2017, overall potash prices were broadly flat to positive at the four locations we’re covering in this series.
Fertilizer Prices Update: Week Ended December 8
CVR Partners (UAN) emerged as the top gainer last week, rising 17.4% week-over-week to close at $3.70. CF Industries (CF) followed, rising 4.4% to close at $39.30.
Outlook: Where Potash Fertilizers Are Headed in the Near Term
PotashCorp’s (POT) CEO (chief executive officer) Jochen Tilk said potash prices for the company were 20% higher year-over-year, driven by higher affordability and tight supply.
Your Potash Price Update for the Week Ending November 24
Last week, the granular MOP (muriate of potash) prices in NOLA (New Orleans) in the US (NANR) rose by as much as 45 basis points week-over-week to $203 per metric ton.
Behind PotashCorp’s Ownership in Arab Potash
PotashCorp owns 28% of Arab Potash and can appoint three of the latter’s 12 board members. It can also reportedly appoint senior management positions.
An Update on the PotashCorp-Agrium Merger
On September 12, 2016, PotashCorp and Agrium announced their intention to combine in a merger of equals. But China and India have set conditions.
Potash Price Update for the Week Ending November 17
The potash prices in the Cornbelt region were flat at $231 per metric ton. It was the sixth consecutive week that potash prices were mostly unchanged.
Latest Update on Fertilizer Price Movements
In the week ending November 17, most of the agricultural fertilizer stocks ended in negative territory. Intrepid Potash emerged as the biggest loser.
Why PotashCorp Dominates in Potash Gross Margins
The median gross margin for the potash segments of the five companies in the above chart was 24%. A year ago, in 3Q16, the median was 9%.
Potash Prices in 3Q17: A 5-Company Comparison
Potash price realizations for fertilizer companies were significantly higher YoY (year-over-year) in the third quarter of 2017.
How Did Fertilizer Stocks Perform Last Week?
In the week ending November 3, agricultural fertilizer stocks were broadly positive.
CF Industries’ 3Q17 Gross Margins Are Still a Concern
Overall, CF Industries’ (CF) gross margins continued to be pressured by lower fertilizer prices. The company’s overall margins were almost flat year-over-year.
Mosaic’s Shipments Were Weak in 3Q17
For Mosaic, the Phosphate segment’s shipments suffered the most. The segment fell as much as 17% YoY to 2.1 million tons from 2.5 million tons.
An Update on Potash Prices for the Week Ended October 27
Potash fertilizers (XLB) have shown strength so far this year, which was evident in the earnings of PotashCorp (POT), one of the largest producers of potash fertilizers globally.
Fertilizer Prices for the Week Ended October 27, 2017
Last week, the VanEck Vectors Agribusiness ETF (MOO) closed 40 basis points higher from the start of the week. The S&P 500 Index (SPY) ended the week 62 basis points higher.
Behind PotashCorp’s Potash Shipments in 3Q17
PotashCorp’s (POT) Potash segment sales grew by ~9% YoY to $1.2 billion in 3Q17. Strong shipment volumes and price growth drove this growth.
PotashCorp: Analysts’ 3Q17 Earnings Estimates
PotashCorp is expected to report an EPS of $0.11, which will be flat compared to 3Q16. However, earnings growth is expected in the next four quarters.
Potash Prices Rose in the Week Ending October 13
Potash prices continued to show strength in the week ending October 13. The prices continue to support companies’ volume growth.
How Potash Prices Prices Performed Last Week
Potash prices remained firm last week, which was a trend we’ve seen in potash prices for the most part of this year.
How Fertilizer Stocks Performed Last Week
In the week ending October 6, the VanEck Vectors Agribusiness ETF (MOO) fell by seven basis points from the beginning of the week.
CF Industries’ Shipments Impact Its Sales
Overall, CF Industries’ shipments rose 11% YoY (year-over-year) in 2Q17 to ~5 million tons. While the shipments grew YoY, the sales didn’t grow.
Potash Prices Lacked Movement: Week Ending September 15
Last week, potash prices in the Cornbelt region of the US moved sideways week-over-week to $230 per metric ton.
Fertilizer Affordability for Week Ended August 25
Fertilizers have displayed a high level of affordability this year, which has supported the strong demand for fertilizers.
Potash Prices Showed Stability for Week Ended August 25
Fortunately for fertilizer producers, potash prices have offset some of the negative impact from nitrogen and phosphate fertilizers.
Fertilizer Affordability Index Rose Again Last Week
For the week ending August 18, fertilizers continued to become less affordable. Fertilizer affordability can help indicate the demand for fertilizers.
Potash Price Update for the Week Ending August 18
Last week, potash prices in the Brazil region remained unchanged at $265 per metric ton—the 13th week that prices in Brazil moved sideways.
Inside the Potash Margins of 5 Major Fertilizer Companies
Given the growth in potash shipments and the increase in price realization, it’s natural that the margins of potash producers improved YoY in 2Q17.
Agrium’s Margins See Expansion despite Weak Prices in 2Q17
Despite a sales decline and lower year-over-year price realization, Agrium’s (AGU) margins saw an improvement during 2Q17.
IPI’s Potash Segment’s Price Realization Rose 22% in 2Q17
Intrepid Potash’s 2Q17 price realizations for its Potash segment were significantly better compared to 2Q16.
Why Mosaic’s Margins Expanded in 2Q17
Mosaic’s gross margins expanded from 9% in 2Q16 to 12% in 2Q17.
How Did Fertilizer Affordability Trend Last Week?
Last week, the Fertilizer Affordability Index rose by as much as 5.7% week-over-week to 0.56x from 0.53x last week.
Potash Prices Held Stable in the Week Ending July 28
For the week ended July 28, MOP (muriate of potash) prices in the Corn Belt region of the US saw positive momentum with increases by as much as 1.6% week-over-week.
Fertilizer Stocks Had a Negative Week
The week ending July 28 was mostly negative for agricultural fertilizer stocks.
Why Analysts Project Massive Earnings Growth for Mosaic
Earlier in this series, we saw how Mosaic’s (MOS) top line is expected to grow in 2Q17 and how the top-line growth translates into margin growth for the company.
Why Mosaic’s Gross Margins Could Expand in 2Q17
The Mosaic Company (MOS) mainly produces and sells phosphate and potash fertilizers. The company is one of the largest producers of phosphate….
Will PotashCorp Report Flat Earnings Growth in 2Q17?
PotashCorp (POT) had lackluster earnings growth last year. However, the company reported EPS (earnings per share) growth in 1Q17.
PotashCorp’s Gross Margins Are Expected to Expand in 2Q17
PotashCorp’s gross margins are expected to improve in its 2Q17 earnings. Analysts expect its gross margins to rise to 28% on gross income of $296 million.
Where Potash Prices Are Showing Firmness as of July 7
Unlike the nitrogen and phosphate fertilizer prices, potash fertilizer prices have remained relatively stable so far in 2017.
Where Intrepid’s Potash Segment Margin Stands next to Peers
Intrepid Potash’s (IPI) gross margin for its Potash segment swung to positive territory in 1Q17, while its Trio margins were in the negative territory.
Trio Makes a Move for Intrepid Potash
Between Intrepid Potash’s (IPI) two operating segments—Potash and Trio—the sales share of Trio has been expanding.
How Lower Fertilizer Prices Are Hurting Intrepid Potash
Realized prices for fertilizer companies are the main culprit for the dismal performances among companies in the agricultural fertilizer sector.