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Mixed Signals For Fertilizer Companies - Zacks Industry Rank Analysis
Charles Rotblut (September 30th, 2008) Writes:
Key Points:
Urea prices fell by more than $70 in late September
A strike is helping to support potash prices
Some analysts are raising 2009 earnings forecasts
Highlighted stocks include AGU, CF, MOS, POT and TRA
Fears that fertilizer companies could be losing pricing power sent their shares tumbling late last week.
The primary cause was a sharp drop in urea prices. A report published last Thursday on Farm Futures revealed a $70 decline in Black Sea prices over the previous 2 weeks. (Ammonia prices were weaker as well.)
Urea is a key ingredient used in fertilizer. Traders are concerned that the recent drop is an early signal of slipping demand for fertilizer. Any weakness would call into question fourth-quarter and 2009 profit forecasts for Agrium (AGU), CF Industries (CF), Mosaic (MOS), Potash of Saskatchewan (POT) and Terra Industries (TRA).
It is possible that some farmers are choosing
...Tags for this Post:
Agricultural Products, Agrium, Black Sea, cents, Charles Rotblut, China, CNH Global, Deere, food shortages, MOS, POT, Potash, Saskatchewan, Stocks to Watch, terra industries, USD, Zacks.com
Agricultural Products, Agrium, Black Sea, cents, Charles Rotblut, China, CNH Global, Deere, food shortages, MOS, POT, Potash, Saskatchewan, Stocks to Watch, terra industries, USD, Zacks.com
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