HomeLatestRussia Surrenders Global Fertilizer Domination
Russia Surrenders Global Fertilizer Domination
March 23, 2022 - by Kevin Flynn
Russia Surrenders Global Fertilizer Domination
The oil crisis is what’s getting all the headlines, but Russia exports more than crude. According to the most recent sales numbers, Putin’s teetering economy is losing billions of dollars (trillions in rubles) on sanctions in a market they have dominated for decades. We’re talking about fertilizer. Russia is the largest global exporter of urea, UAN, phosphate, and potash.
China won’t help them on this one. A state planner for the National Development and Reform Commission (NDRC) stated this week that China is “seeking new sources to actively import potash fertilizer.” The rest of the world is scrambling to do the same. It’s spring. Crops need to be planted. They won’t grow without fertilizer, which is now in short supply.
Compounding the problem, the labor strike at Canadian Pacific Railway (CP) is reducing Canada’s capacity to produce and export goods. They are the third largest exporter of fertilizer in the world behind Russia and China, outpacing the fourth place United States by nearly $2 billion a year. Like today’s NFL power rankings, expect that order to shift by harvest time.
This may sound like a familiar rant by now, and it should. When demand is high and supply is limited, the price of goods and services go up. Have you been to the gas pump recently? Those increases are reflected in share prices. Last week, I wrote about investing in oil companies to offset rising fuel bills. Let’s talk about fertilizer this week.
The cost of fertilizer affects the cost of food. Add that to increased transportation costs and we’re looking at weekly grocery bills that could be double what we paid last year by the time harvest season gets here in fall. It’s already happening. Urea, anhydrous, UAN28, and UAN32 hit all-time price highs two months ago. They’re not going down anytime soon.
Who benefits? Nutrien (NTR), a Canadian company that is the largest exporter of potash in the world, is up 38.60% YTD. They started the year at $76.12 and opened this morning at $105.50. The rail strike might cause a slight dip. Buy it when that happens. In the meantime, load up on Mosaic (MOS), their US competitor. They’re up 68.57% this year and still climbing.
Another US company in this space to keep an eye on is CF Industries (CF). Based in Deerfield, Illinois, the company is fifty-six years old and experiencing the greatest two-year run in its history. After bottoming out in March 2020 at $25 a share, they’ve climbed all the way to $101.74 at the opening bell this morning. Since January 1st, they’re up 44.91%.
What else does Russia export?
The war continues to wage on, and western nations are imposing sanctions that are crushing the Russian economy. In addition to crude oil and fertilizer, Russia also exports iron, steel, wood, cereals, aluminum, and computer equipment. United States Steel Corporation (X) has risen 54% since the end of February. Alcoa (AA) is up 25.20% over that same period.
Don’t get me wrong. I’d much rather see peace in Ukraine, but the investment opportunities this war is presenting cannot be ignored. If the conflict were to end tomorrow, the sanctions won’t simply go away. The void created by Russia’s inability to do business with western nations needs to get filled. I’m investing in the companies that are filling it.
Share this article:
Disclaimer
This communication was produced by Prism MarketView. The information contained on this is ‘Paid Advertising’ for purposes of Section 17(b) of the Securities Act of 1933, as amended (together with the rules and regulations there under, the “Securities Act”). “PRISM” and its affiliates are compensated by respective clients for publicizing information relating to its client’s securities. For more information in terms of compensation received for services provided by PRISM see the pertinent advertising materials relating to the respective client. By accessing this Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy…
This communication was produced by Prism MarketView, “PRISM”. The information contained on this is ‘Paid Advertising’ for purposes of Section 17(b) of the Securities Act of 1933, as amended (together with the rules and regulations there under, the “Securities Act”). “PCG” and its affiliates are compensated by respective clients for publicizing information relating to its client’s securities. For more information in terms of compensation received for services provided by PRISM, see the pertinent advertising materials relating to the respective client. By accessing this Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy.
“PRISM” and its affiliates are not a registered or licensed broker, dealer, broker-dealer, investment adviser nor investment manager, nor does “PRISM” engage in any activities that would require such registrations. “PRISM” and its affiliates do not provide investment advice, endorsement, analysis or recommendations with respect to any securities, and its services to or statements about its clients should never be construed as any endorsement of or opinion about any security of any client. No information contained in this communication constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other similar product or service regardless of whether such security, product, or service is referenced in this communication.
Our articles, reports/releases and videos are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We only publish favorable information because we are compensated to publish only favorable information. We are not objective or independent and have multiple conflicts of interest. The Profiled Issuers and parties hiring us have conflicts of interest.
This communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, market conditions, regulatory developments, and other factors beyond the control of the profiled company. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. PRISM undertakes no obligation to update or revise any such statements.
The contributors may buy and sell securities before, during and after any particular article, report and publication. In no event shall “PRISM” or affiliates be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by “PRISM”, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.Further, nothing in this communication is intended to provide tax, legal, or investment advice and nothing in this communication should be construed as a recommendation to buy, sell or hold any investment or security or to engage in any investment strategy or transaction. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. Never invest in any stock featured by “PRISM” and its affiliates unless you can afford to lose your entire investment.We urge Investors to conduct their own in-depth investigation of the Profiled Issuers with the assistance of their legal, tax and investment advisers. An investor’s review of the Information should include but not be limited to the Profiled Issuer’s financial condition, operations, management, products or services, trends in the industry and risks that may be material to the profiled Issuer’s business and other information he and his advisers deem material to an investment decision. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at www.finra.org.
FuelCell Energy, Inc. (NASDAQ: FCEL), a clean energy technology company that manufactures utility-scale fuel cell power systems, is set to…
About the Author:
Kevin Flynn
A former financial professional and founder of AdvisorScale Financial Writing, Kevin lives in Leominster, Massachusetts with his wife Evelyn, two cats, and nine wonderful grandchildren.
