Since fertilizer prices are correlated to agricultural commodities (aka food), Verde Agritech has just started its multi-year bull market. With tensions in Belarus (Russia is occupying Belarus which provides 15% of global potash), Lithuania (supply chain disruptions) and Russia sanctions (Russia provides 50% of global potash), fertilizer prices will skyrocket.
Ammonia prices are trading below cost of production.
Natural gas is therefore correlated to ammonia and fertilizer prices.
Russia and China are already banning fertilizer raw material exports.
Fertilizer price index can be found here.
Potash is historically not that expensive when you compare it to the yield gain.
There is an optimal fertilizer to crop yield curve.
Video on correlation between natgas and fertilizers.
Geen opmerkingen:
Een reactie posten