Fertilizer product led by CF Industries (New York Stock Exchange: CF) fell in Thursday trading as most of the stock market rose, as nitrogen prices would have fallen by 30%in part because of demand destruction.
CF Industries (CF) closed -3.8% after dropping by up to 5.5%, while Nutrien (NYSE: NTR) completed -2.5%Mosaic (NYSE: MOS) -1.4%fearless potash (IPI) -1.2% and CVR Partners (UAN) -0.8%.
According to Bloomberg, the June spot price in Tampa, Florida, for ammonia nitrogen fertilizer came in at $1,000/metric ton, down 30% from May’s $1,425/tonne.
Southeast Asia and other places are seeing more buyers unwilling to pay the record prices seen in April and May, and the cost of ammonia production has come down as oil prices European natural gas fell in the second quarter, Green Markets analyst Alexis Maxwell told Bloomberg. .
But Yara International (OTCPK:YARIY) CEO Svein Tore Holsether expects fertilizer prices to remain high, noting that 25 million metric tons of corn and grain are stuck in black sea ports because of the war in Ukraine, and Russian exports of grain and fertilizers are disrupted by sanctions.
Bank of America analysts believe China is set to extend export restrictions on domestic fertilizers through mid-2023, prompting buy ratings for CF, Mosaic and Nutrien .