|Bid||32.76 x 1300|
|Ask||32.76 x 1000|
|Day's Range||32.45 - 32.81|
|52 Week Range||27.69 - 36.15|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.05|
|Expense Ratio (net)||0.35%|
Investors looking to protect portfolios against inflation often turn to Treasury Inflation Protection Securities (TIPS), but there are other ways to buffer a portfolio against rising consumer prices. Hard assets often perform well when inflationary pressures rise, a scenario that could benefit equity-based exchange traded funds such as the SPDR S&P North American Natural Resources ETF (NANR). NANR tracks the S&P BMI North American Natural Resources Index, which is a subset of the S&P Global Large MidCap Commodity and Natural Resources Index, according to State Street Global Advisors (SSgA), the third-largest U.S. ETF issuer.
DAP (diammonium phosphate) prices continued to struggle for direction at most of the locations we’ll look at below. That pause in prices may slow down companies (NANR) such as Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL).
Last week, potash prices recorded a strong weekly gain at the four locations discussed below. Potash prices continued to show strength, which increased optimism for companies (NANR) such as Nutrien (NTR), Intrepid Potash (IPI), Israel Chemicals (ICL), and the Mosaic Company (MOS).
In the week ending September 28, granular potash prices were broadly higher, while standard potash prices were flat week-over-week. Potash prices have been strong in 2018. Last week, potash prices made new highs. Higher prices are positive for companies (NANR) like Mosaic (MOS), Nutrien (NTR), Israel Chemicals (ICL), and Intrepid Potash (IPI).
Fertilizer affordability affects sales volume for fertilizer companies (NANR) such as Mosaic (MOS), Nutrien (NTR), CF Industries (CF), and Intrepid Potash (IPI). Lower affordability negatively impacts demand, and fertilizer affordability has been deteriorating over the past few weeks.
Nutrien (NTR), the combined company that resulted from the Agrium and PotashCorp merger, has yet to deliver meaningful returns similar to fertilizer (NANR) companies such as the Mosaic Company (MOS) and CF Industries (CF). The company, which has significant exposure to potash fertilizers, has held up well so far this year, in line with potash prices. The overall consensus recommendation for Nutrien in September is a “buy.” Of the 19 analysts covering the stock, five have maintained “strong buys” this month, unchanged from August.
We’re looking at natural gas prices in this series, primarily because they make up about two-thirds of the input costs for nitrogen-based fertilizers. Low natural US gas prices have proved beneficial to companies (NANR) such as CF Industries (CF), Mosaic (MOS), Nutrien (NTR), and CVR Partners (UAN). Let’s see how natural gas performed last week, which ended August 31.
Fertilizer affordability last week, which ended on August 10, was largely unchanged, as reported by Mosaic (MOS). The Affordability Index, which represents crop prices over fertilizer prices, gives us a picture of how the relationship between the two has progressed.
The potash market was no different than nitrogen and phosphate. Potash prices were depressed due to oversupply. Recently, potash prices have been rising, which explains the supply-demand dynamics.