Potash, Fertilizers, Agricultural Crops “Looking Rather Good”

Writing for Investor Intel, Alessandro Bruno states that “fertilizers, agricultural sector stocks and potash in particular … are looking rather good – especially in the mid and long terms.”

As quoted in the market news:

There is the sensation that fertilizer – potash, phosphate, nitrogen – stocks are ‘overweight’ and that there is a potash glut. Grain prices have dropped, suggesting that investors will react in a bearish manner, as if guided by ‘Pavlovian’ conditioning. Nevertheless, fertilizer prices, and potash ones in particular, should hold, since consumption is high and the industry has had plenty of time to absorb and expect the lower grain prices – a trend that may last into the next year. Indeed, the sustained low crop prices may be close to reaching the bottom and any increase will meet a corresponding increase in fertilizer prices.

Click here to read the full Investor Intel report.