Western Resources Corp is a resource company focused on the development of its potash project in Canada owned by its wholly owned subsidiary, Western Potash Corp, located in Southern Saskatchewan. Its objectives are to successfully complete Phase I of the Milestone Project to prove a new mining technology, which will then be applied to Phase 2 and 3 to develop potash deposit at an environmentally friendly model. The company's two reportable operating segments, being the acquisition, exploration and development of mineral properties and the investment in real estate projects in Canada.
"All of these things came together to put us to where we are today," said Josh Linville of StoneX. "It's not going to be a single event that gets us back down to where we were."
Josh Linville: Fertilizer Market in Uncharted Waters as Prices Soaryoutu.be
Rising fertilizer costs have become a topic of widespread conversation since the war between Russia and Ukraine broke out, with global headlines sparking concerns about shortages and higher food prices.
Speaking to the Investing News Network, Josh Linville, director of fertilizer at StoneX, said that while the conflict between the two countries has brought the fertilizer space into focus, it's far from the only factor at play.
"This is the one (event) that's finally kind of brought it to the forefront ... (but) this isn't something that happened overnight, this is not just a Russia/Ukraine situation," he said during the interview.
Linville explained that fertilizer prices hit a low point in the summer of 2020, but since then various elements have combined to push the market upward — those include COVID-19 stimulus in the US, natural gas price increases in Europe and production outages caused not only by the pandemic, but also by events like Hurricane Ida.
That's not to downplay the importance of the war between Russia and Ukraine — Linville noted that Russia plays a key role in global fertilizer production, and said that the ability of other countries to increase their output is limited.
"Since this Ukrainian/Russian war has been going on, I've seen something I never thought I would see, and that's most of the free world coming together and saying, 'We are so adamantly against what you have done that we are completely shutting off our economies to you.' I never thought we would see this happen," he said.
Speaking about how higher fertilizer prices are affecting food prices, Linville said while he doesn't buy into the idea of food shortages, it's clear that food is already becoming more expensive. "But again, this isn't something that just happened with Russia/Ukraine. This was already happening," he emphasized.
Looking forward, he doesn't expect fertilizer prices to stay as elevated as they have been, but also doesn't see them going back down to the levels seen during the summer of 2020.
"All of these things came together to put us to where we are today," Linville commented. "It's not going to be a single event that gets us back down to where we were — it's going to be a long time period of healing before we get back to what we consider normal in this industry."
Watch the interview above for more of his thoughts on the fertilizer market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
New Tech Minerals Corp is a Canada based mineral exploration company. It is engaged in the discovery and development of critical minerals in the United States including cobalt, vanadium, potash, and lithium. The company's principal projects include the Paradox Basin Potash project, Buena Vista Hills Cobalt-Vanadium project, Tule Cobalt project, and Missouri Cobalt project.
Great Quest Fertilizer Ltd is a resource development company. Principally, it is engaged in the exploration and development of exploration and evaluation properties located in Mali, West Africa. The company's project consists of Tilemsi phosphate is located in eastern Mali, Sua Pan Potash located in northern Botswana, and Sanoukou gold project.
Encanto Potash Corp is a Canadian-based company involved in the industrial metals and mining business sector. The company is engaged in the exploration and development of potash properties in the Province of Saskatchewan. It focuses on the Muskowekwan First Nation potash mineral deposits located on the reserve lands approximately 100 km north of Regina, Saskatchewan.