|Bid||0.00 x 800|
|Ask||0.00 x 1200|
|Day's Range||68.41 - 68.76|
|52 Week Range||64.10 - 75.19|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.47%|
Earlier in this series, we looked at how higher energy costs led to an increase in nitrogen fertilizer prices. In Europe, the cost of natural gas rose by 53% year-over-year as of June 2018, according to CF Industries (CF). China, which uses coal to produce nitrogen fertilizer, saw a 32% increase in prices year-over-year as of May 2018. In its second-quarter press release, CF Industries stated that natural gas prices in Europe may continue to increase in 2019.
Praxair’s (PX) Asian segment was its second-biggest revenue contributor in Q2 2018. Its share of the company’s overall revenue expanded by 1.5 percentage points YoY (year-over-year) to ~16.4% from 14.9%. PX’s Asian revenue grew 19.0% YoY in the second quarter, to $502 million from $422 million.
MAP (monoammonium phosphate) prices continued to inch higher last week and hit new highs. Prices have continued to rise, indicating a favorable supply-demand environment for MAP fertilizers in the Brazil and NOLA (New Orleans) regions.
Between July 11 and July 18, natural gas spot prices at Henry Hub fell about 4.2% to $2.72 per MMBtu (million British thermal units). According to the EIA (Energy Information Administration), this decline in prices resulted from higher production or supply of natural gas.
Last week, which ended July 13, DAP (diammonium phosphate) prices continued to rise at most of the locations in the chart below. Rising DAP prices boost expectations for favorable earnings outcome for companies (MXI) such as Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL). Let’s look at DAP prices by location.
DAP (diammonium phosphate) fertilizer prices in four of seven locations around the world rose last week, continuing an upward momentum. Prices at the other three locations were unchanged. At each of the locations, the current prices were at their peak since the beginning of the year.
The first-quarter 13F filings indicate that institutional investors own 70.9% of DowDuPont’s (DWDP) outstanding shares. A total of 1,957 institutions hold DowDuPont. Among the institutions, 825 increased their positions on DowDuPont, 908 reduced their positions, and 224 maintained their positions. Although more institutions sold DowDuPont, more shares were bought by institutions than the number of shares sold.
Potash prices in the week ended April 20 were flat to positive at the locations we’ll cover below. Potash prices have remained strong so far in 2018, which is a relief for potash producers (MXI) Nutrien (NTR) (POT), Mosaic (MOS), and Intrepid Potash (IPI).
Its one-year forward PE (price-to-earnings) multiple currently stands at 25.8x. Its peer Air Products & Chemicals (APD) has a one-year forward PE multiple of 23.6x. The forward PE multiple is a valuation method that factors in future earnings.
Hold on to that safety bar, because the market is off to a wild start in 2018. Not only that, more than a trillion dollars left actively managed exchange-traded funds last year and most of it found its way into passively managed ETFs. Thus, ETFs continue to be very popular, even though many of them are essentially duplicates of one another.
Natural gas is one of the key input components for gas-based nitrogen fertilizer producers (MOO)(MXI) such as CF Industries (CF), Terra Nitrogen (TNH), CVR Partners (UAN), and Nutrien (NTR).
FMC (FMC) reported its earnings on November 6, 2017. It reported an EPS (earnings per share) of $0.7, which beat analysts' estimate of $0.63 per share.
For Mosaic, the Phosphate segment's shipments suffered the most. The segment fell as much as 17% YoY to 2.1 million tons from 2.5 million tons.