I am a novice farmer, a pseudo intellectual when it comes to things pertaining to the land, so correct me if I’m wrong on any of these items — FarmerFAGS.
Shares of MOS are higher by 23% the past mo and the whole sector is doing well, alongside natural gas. Gas prices in Europe are at new highs and our prices are the highest since 2014. All of this is happening whilst the market gets crushed, so the coverage of these two items have gone mostly unnoticed.
Apparently, natural gas is used in the production of ammonia. It is used as a source of hydrogen. I don’t know if this is a chicken vs egg deal. All I know is prices are going higher and the earnings at MOS were good and getting better.
The share price is on a tear too.
Spot prices for fertilizers, through the roof.
Here are some random notes I picked up while doing some digging.
Urea prices are higher due to increased Indian demand and also because of Iranian sanctions. Indian is no longer accepting supply from Iran — a major supplier of urea.
Production costs in Europe, due to high gas prices and limited Chinese exports have decreased supply.
This is an industry that seems to be insulated from the market environs. Now you know.
Stocks that I’m interested in now are MOS, IPI, UAN, NTR, SWN and NGS.