Fertilizer producers led by CF Industries (New York Stock Exchange: CF) fell in Thursday trading as most of the stock market rose, as Bloomberg reported that nitrogen prices fell 30%, in part due to demand destruction.
CF Industries (CF) closed -3.8% after falling 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. .
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 in because of the war in Ukraine, and that Russian grain and fertilizer exports are being disrupted by the 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 .