|Bid||59.75 x 3000|
|Ask||59.76 x 1300|
|Day's Range||59.47 - 60.00|
|52 Week Range||55.21 - 64.17|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
Last week, potash prices didn’t show movement in NOLA (New Orleans) or the Cornbelt region of the US. However, prices in Brazil and Southeast Asia gained week-over-week. Companies (XLB) such as Nutrien (NTR), Mosaic (MOS), and Israel Chemicals (ICL) have experienced stability in potash prices more than in nitrogen fertilizer prices, which are more volatile as a result of the volatility in natural gas prices.
DAP (diammonium phosphate) prices have been rising lately, and prices in some areas have reached three-year highs. However, last week it seems that DAP prices may have been reversing, especially in places like Morocco, Saudi Arabia, India, and China. Companies (XLB) such as Mosiac (MOS), Nutrien (NTR), Israel Chemicals (ICL), and Intrepid Potash (IPI) benefit when prices rise.
On September 10, Air Products and Chemicals (APD) announced that Samsung Electronics awarded the company with a contract to supply additional gaseous nitrogen and hydrogen to its plant in Giheung, South Korea. Air Products and Chemicals has been supplying gases to Samsung Electronic’s Giheung site since 1998. The additional order will help Air Products and Chemicals increase its strength in the region. However, Air Products and Chemicals didn’t disclose any of the deal’s financial aspects.
Low natural gas prices in the US have been highly beneficial for North American fertilizer companies (XLB) including CF Industries (CF), CVR Partners (UAN), Nutrien (NTR), and Mosaic (MOS). The lower natural gas prices enable these companies to sit on the lower end of the cost curve, which is good for margins when overall fertilizer selling prices rise.
On September 12, Dow Chemical, part of DowDuPont (DWDP), announced debottlenecking and capacity expansion plans in its silicones business. The company intends to meet the growing demand in end markets like electrical, consumer goods, performance building, and home and personal care. However, Dow Chemical didn’t specify the financial aspects of the investment.
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MAP (monoammonium phosphate) prices last week were broadly flat to positive at the two locations in the graph below. Similar to DAP prices, MAP prices have gained significant momentum in the first half of this year, giving a boost to the phosphate segments (XLB) of Mosiac (MOS), Nutrien (NTR), and Israel Chemicals (ICL).
The new Dow will include three verticals: consumer care, infrastructure, and packaging. DWDP expects form ten to be effective in Q1 2019, which is close to the separation date. Jim Fitterling, CEO of the new Dow, said, “The Form 10 is a significant step towards the creation of the new Dow – the world’s leading materials science company.
We track natural gas prices since they can have a significant impact on the prices of nitrogen fertilizers for companies (XLB) such as CF Industries (CF), Mosaic (MOS), CVR Partners (UAN), and Nutrien (NTR). Fortunately, these companies have enjoyed low natural gas prices in the United States compared to energy prices in Europe and China.
Over the past several years, commodity traders have profited from some of the strongest uptrends found anywhere in the public markets. As we'll discuss in this article, the defined levels of support, as measured by ascending trendlines, have provided consistent entry positions for strategic traders looking to gain exposure. The recent introduction of sideways momentum is now dominating the price action and seems to creating clear levels of support and resistance. When broken, these levels will likely define the direction of the next leg of the long-term trend.
CF Industries (CF) enjoys a strategic advantage over other global nitrogen fertilizer players. The company’s access to cheap natural gas in the United States has given it the opportunity to expand its margins when nitrogen prices are on the rise. Let’s look at what analysts recommend for the company.
Fertilizer affordability has been negatively impacted by the direction in which fertilizer prices have been moving in relation to the prices of key fertilizer-consuming crops such as corn, wheat, and soybeans. Lower fertilizer affordability can weigh on companies (XLB) such as Mosaic (MOS), Intrepid Potash (IPI), CVR Partners (UAN), and CF Industries (CF). The index, issued by Mosaic, has been rising lately, which is a similar pattern to the recent movement of fertilizer prices.
The FTSE4Good Index measures the performance of companies that demonstrate strong environmental, social, and governance (or ESG) practices. On August 25, DowDuPont (DWDP) announced that it had been named as a part of the FTSE4Good Index Series. This index acts as a benchmark for sustainable investment and helps investors to identify companies that are environmentally and socially sustainable.
Urea prices last week stayed strong at both NOLA (New Orleans) and Brazil. Prices have been trending higher lately, reaching their highest levels since the beginning of January 2016. Let’s dig more deeply into price movements last week.
September trading arrives and if history is an accurate, the ninth month of the year could be tricky to navigate for domestic equities. Over the past two decades, the S&P 500 has averaged September losses ...
Stocks (^DJI, ^GSPC, ^IXIC) lower as China trade worries linger. The utlities (XLU) sector is most in the green, and the materials (XLB) sector is most in the red. Yahoo Finance’s Jared Blikre joins us live from the floor of the New York Stock Exchange to talk markets. To discuss the other big stories of the day, Yahoo Finance’s Dion Rabouin is joined by Stephanie Sy, Dan Roberts , Julia LaRoche, Myles Udland, and Melody Hahm. ...
LyondellBasell (LYB) declared its third-quarter dividend in a press release on August 22. To be part of the dividend, investors should hold LyondellBasell shares at the end of September 5 in the company’s records. LyondellBasell is expected to pay the dividend on September 12.
Having discussed the earnings and EBITDA (earnings before interest, tax, depreciation, and amortization) expectations for fertilizer companies (XLB) in the earlier parts of this series, we’ll now look at these companies’ valuation multiples and how they stack up. The above chart shows the forward PE (price-to-earnings) multiple of the four companies. Israel Chemicals (ICL) had a forward PE multiple of 14.2x as of August 27.
In the earlier parts of this series, we discussed how the four fertilizer stocks we’re reviewing in this series are expected to experience year-over-year sales growth and margin expansion in fiscal 2019.
DAP (diammonium phosphate) fertilizer prices continued to hit new highs last week, which ended on August 24. Ammonium phosphate fertilizers use ammonia, which is a nitrogen fertilizer. The tighter supply of ammonia creates a pressure on ammonium-based phosphate and leads to an overall increase in prices.
Fertilizer companies such as CF Industries (CF), Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL) face pressure on margins given that their products are commodities in nature. Rising fertilizer prices can act as a catalyst for a marginal player to start up idled facilities or construct newer capacity in order to take advantage of higher prices. With that said, the fertilizer industry cycle is trending up, and the margins are estimated to expand for these four companies.
While some sectors, like housing, is still recovering from the financial crisis, many state governments have built up rainy day funds and are better prepared to weather the next recession. Yahoo Finance’s Seana Smith, Maylan Studart, Rick Newman and Dion Rabouin discuss.
Yahoo Finance's Seana Smith and Jared Blikre on the biggest headlines moving the markets in afternoon trading.