|Bid||2.81 x 1300|
|Ask||2.95 x 2200|
|Day's Range||2.76 - 2.93|
|52 Week Range||2.58 - 4.20|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 25, 2018 - Jul 30, 2018|
|Forward Dividend & Yield||0.46 (14.74%)|
|1y Target Est||4.78|
The week ending June 8 was positive for fertilizer stocks. The VanEck Vectors Agribusiness ETF (MOO) rose 2% and continued to rise on June 12. The S&P 500 Index (SPY) rose 1% during the same period and increased by 13 basis points yesterday. Most of the fertilizer stocks were also broadly positive last week.
Natural gas prices are critical for nitrogen and ammonia-based phosphate fertilizer producers. The input cost of natural gas is highly volatile and may significantly affect the profitability of producers (MOO) such as CF Industries (CF), CVR Partners (UAN), Nutrien (NTR), and Mosiac (MOS). Let’s look at how natural gas performed last week.
After a brief pause in the direction two weeks ago, urea prices found positive momentum last week at both locations including Brazil and NOLA (New Orleans) US. The positive momentum in urea prices seemed just around the corner with most of the companies including CF Industries (CF), Nutrien (NTR), CVR Partners (UAN), and Mosaic (MOS) indicating a slowdown from Chinese producers (XLB). Both new government regulations and rising energy prices have put pressure on Chinese nitrogen producers lately.
Last week was broadly negative for the fertilizer sector, and most major companies experienced a weekly decline. The VanEck Vectors Agribusiness ETF (MOO), a broad benchmark for the agribusiness sector, fell almost 1.5% week-over-week. This ETF continued its decline on May 29 and closed almost 1.3% lower from a day ago.
Fertilizer affordability continued to improve last week as a result of broader weakness in fertilizer prices, particularly in urea and phosphates, as we discussed in the earlier parts of this series. This index is calculated with fertilizer prices in the numerator and crop prices in the denominator. Last week’s improvement in fertilizer affordability came primarily from the weakness in fertilizer prices, while the crop prices remained unchanged week-over-week. Note that an index level of one indicates that the fertilizer price to crop affordability was the same as in the base year of 2005.
Natural gas prices in most locations in North America rose last week, according to the latest EIA (Energy Information Administration) weekly report on natural gas.
Urea prices continued to decline last week in both NOLA (New Orleans) and Brazil. However, prices remained higher than they were in the corresponding week last year.
Last week was broadly negative for urea prices, with average NOLA (New Orleans) and Brazilian prices declining WoW (week-over-week). Also, CF Industries (CF) reported its earnings on May 2 and gave some updates on urea prices. Let’s look at these developments.
Last week (ended May 4) was broadly positive for the agribusiness sector. The VanEck Vectors Agribusiness ETF (MOO) rose 27 basis points, and the broader-market S&P 500 (SPY) rose 57 basis points.
Mosaic (MOS) plans to announce its 1Q18 earnings on May 7 after the market closes. The stock has had a positive run so far this year with a YTD (year-to-date) gain of 5.3%, outperforming Nutrien (NTR), CVR Partners (UAN), and CF Industries (CF). EPS expectations
Last week, urea prices at the two locations discussed below were broadly mixed compared to last week’s levels. However, prices still maintained a double-digit gain compared to the corresponding week a year ago in 2017.
CVR Energy also noted that its current executive vice president, general counsel and secretary has agreed to stay on with the company through July 31.
SUGAR LAND, Texas, May 02, 2018-- CVR Energy, Inc. today announced that Tracy Jackson has been named executive vice president and chief financial officer. Jackson also will serve as executive vice president ...
CVR Partners' (UAN) Q1 earnings fall short of expectations but the company continues to expect a strong application period with robust demand.
SUGAR LAND, Texas, April 26, 2018-- CVR Partners, LP, a manufacturer of ammonia and urea ammonium nitrate solution fertilizer products, today announced a first quarter 2018 net loss of $19 million, or ...
Natural gas prices were positive at most US locations in the week of April 11 to April 18. Those prices account for two-thirds of the cost of producing nitrogen fertilizers and are key to the cost considerations (MOO) for Nutrien (NTR), CF Industries (CF), and CVR Partners (UAN).
Last week, which ended on April 20, urea prices were broadly flat to negative at the two locations we’ll discuss below. Last week’s trend comes as no surprise when we look at the recent weekly trends in urea prices.
Noble Midstream Partners (NBLX), a midstream MLP formed by Noble Energy (NBL) to provide crude oil, natural gas, and water-related midstream services, was the top MLP loss last week. Noble Midstream Partners fell 5.6%. Noble Midstream Partners has lost 14.7% since the beginning of 2018. Noble Midstream Partners’ weakness amid strong gains in the midstream energy sector could be a sign of ensuing trouble for the partnership. For now, the partnership is expected to post strong fourth-quarter earnings. To learn more, read Noble Midstream Partners: 114% Earnings Growth Expected in 1Q18.
Last week, which ended on April 20, the agribusiness sector, reflected by the VanEck Agribusiness ETF (MOO), ended slightly lower week-over-week by 6 basis points. But it continues to stay in positive territory so far this year with a gain of 24 basis points YTD (year-to-date).
While CVR Partners (UAN) is grappling with pricing pressure, the Rentech acquisition and healthy nitrogen demand are likely to support its results in Q1.
Natural gas prices, which are key to US nitrogen fertilizer producers (MOO), were broadly lower during the week of April 4 to April 11, 2018, as reported by the EIA (U.S. Energy Information Administration).
In the week that ended on April 13, 2018, urea prices were broadly flat to negative at the NOLA (New Orleans) and Brazil locations. The weakness in urea prices was a continuation of the trend we’ve observed in the last six consecutive weeks. Last week, granular urea prices at the NOLA location in the United States fell as much as 3.5% week-over-week to $200 per metric ton from $207 per metric ton in the previous week.
SUGAR LAND, Texas, April 12, 2018-- CVR Partners, LP, a manufacturer of ammonia and urea ammonium nitrate solution fertilizer products, today announced that it will release its 2018 first quarter results ...
Natural gas prices affect the profitability of nitrogen as well phosphate producers (XLB) such as Mosaic (MOS), Nutrien (NTR), CF Industries (CF), and CVR Partners (UAN). Low natural gas prices help these companies stay competitive and keep fertilizers affordable.