Ben Isaacson, Equity Research Analyst at Scotiabank Global Banking and Markets, Interviews with The Wall Street Transcript: Select Investment Opportunities as Glory Days for Fertilizer Equities Wind Down

Wall Street Transcript

67 WALL STREET, New York - July 18, 2014 - The Wall Street Transcript has just published its Agriculture & Specialty Chemicals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Chemicals Companies Pricing Power - Emerging Market Demand - Specialty Chemicals and Fertilizer Pricing Power - Raw Material Costs - Potash, Nitrogen and Phosphate Markets

Companies include: Agrium Inc. (AGU), CF Industries Holdings, Inc. (CF), BHP Billiton Ltd. (BHP), Potash Corp. of Saskatchewan, (POT), Chemical & Mining Co. of Chile (SQM) and many more.

In the following excerpt from the Agriculture & Specialty Chemicals Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Where are you focusing your attention in the fertilizer space these days?

Mr. Isaacson: Right now we are spending most of our time looking at the potash market. In the nitrogen space, with grain prices down and nitrogen prices trending lower, there is limited investor enthusiasm in the equities, although there are select opportunities for investors with patience.

Sentiment toward phosphate is somewhat similar to nitrogen, although with fewer investment opportunities, at least in geopolitically stable regions. But, it is the potash market that has been exceptional, with prices in several key markets moving higher since the start of the year.

Naturally the equities have followed, which is in stark contrast to the performance of the stocks following the Russian potash cartel collapse at the end of last July. For the five months following the Russian cartel collapse, many potash buyers withdrew their demand from the market, waiting to find a bottom. In January, China called a bottom to the market through a contract that ultimately led buyers back into the market.

Of course, when everyone returns to the market at the same time, even though we're in a supply-driven market, there is not enough potash to meet the pent-up demand. Therefore, if you want granular potash right now, you probably can't get it, at least not without offering to producers a higher price. This is specifically what's being reflected in potash-levered equities right now.

TWST: And what's happening with the pricing environment?

Mr. Isaacson: As a result of a seasonal demand surge in the granular potash market, coupled with logistical issues in North...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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