5 Top Weekly TSXV Stocks: Aguia Resources Up

Last week's top gainers on the TSX were Compass Gold, Southern Silver, Amarc Resources, Sintana Energy...

April 14th, 2019

Explorers Move Forward as Global Phosphate Appetite Rises

Demand for phosphate is expected to climb from 203.8 million tonnes in 2016 to an estimated...

March 18th, 2019

CSIRO Develops Green Phosphate-smelting Process

CSIRO, Australia’s national science agency, has developed a smelting process that produces soluble phosphate from low-value...

February 20th, 2019

5 Top Phosphate and Potash News Stories of 2018

What were the top phosphate and potash news stories of 2018? With the space looking positive...

January 1st, 2019

Phosphate Outlook 2019: Supply Constraints to Bolster Prices

In 2018, phosphate prices trended higher throughout the year, but what's the phosphate outlook for next...

December 31st, 2018

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Centrex to Exit Iron Ore, Shift to Phosphate with...

Centrex Metals is selling its Port Spencer landholding in South Australia to a local rural investment...

December 31st, 2018

Verdant Locks in AU$160-million Term Sheet for Phosphate Project

The term sheet will help the company move forward at its Ammaroo phosphate project in Australia's Northern...

December 3rd, 2018
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Phosphate is critical for all living organisms. Its primary function is to support strong cell development and water retention, and 90 percent of it is applied to crops to aid plant growth. Because of its essential properties, and since there is no known substitute for it, phosphate can be found in fertilizers all over the world. It is also used as a supplement in animal feed, as a food preservative and for several other chemical purposes. As the world’s population grows and demand for food increases, demand for phosphate is only expected to increase. For that reason, some believe phosphate investing is compelling. Read on for a brief overview of the phosphate market, including supply and demand dynamics and investing options. Phosphate investing: Supply and demand According to the...

Phosphate is critical for all living organisms. Its primary function is to support strong cell development and water retention, and 90 percent of it is applied to crops to aid plant growth.

Because of its essential properties, and since there is no known substitute for it, phosphate can be found in fertilizers all over the world. It is also used as a supplement in animal feed, as a food preservative and for several other chemical purposes.

As the world’s population grows and demand for food increases, demand for phosphate is only expected to increase. For that reason, some believe phosphate investing is compelling. Read on for a brief overview of the phosphate market, including supply and demand dynamics and investing options.

Phosphate investing: Supply and demand

According to the US Geological Survey’s most recent report on phosphate, global phosphate rock production came in at 263 million MT in 2017, up from 255 million MT in 2016. The increase was mainly the result of increased output in China and Saudi Arabia.

China was the top phosphate rock producer last year by a long shot, putting out 140 million MT. Morocco and Western Sahara were in second place with output of 27 million MT. Active phosphate mines are present in a large number of other countries as well, including Russia, Tunisia, Jordan, Brazil, Israel, South Africa, Syria, Togo and Senegal.

The largest phosphate reserves are found in Morocco, which is home to about 75 percent of global reserves. The US also holds large phosphate deposits, particularly in Florida, North Carolina, Idaho and Utah. The US produced 32.6 million MT of phosphate rock in 2017.

In terms of demand, the need for phosphate has been slowly increasing over the last few years. It stood at 40.6 million MT in 2012, and is expected to reach 48.8 million MT by 2021. As mentioned, the world’s growing population and need for food should keep demand growing steadily well into the future as well.

Phosphate investing: Consider stocks

With the future of phosphate looking bright, some investors are wondering how to get into the space. There are certainly ways to do so, although phosphate investing is a little trickier than investing in more mainstream commodities like gold and silver.

One way investors can invest in phosphate is by buying shares of an exchange-traded fund that includes exposure to phosphate. The Global X Fertilizers/Potash ETF (ARCA:SOIL) is one example. However, most market participants choose to invest directly in phosphate-focused companies. Here are three of the largest producers:

  • Nutrien (TSX:NTR,NYSE:NTR)
  • Mosaic (NYSE:MOS)
  • Itafos (TSXV:IFOS)

Information on smaller phosphate companies that have been working to advance their projects can be found by clicking here.

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