Lula Won The Election: Bullish Verde Agritech

Lula is going to reform agriculture.

I believe this is bullish Verde Agritech:

• Interest reductions for farmers using biofertilizers 
• Convert degraded pastures into farmland 
• Lower diesel prices
• Ban Amazon potash
• Higher food prices

Agriculture has just started

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.

Fertilizer Prices Are Skyrocketing

Food prices are correlated to fertilizer prices, because when food rises (leading indicator), farmers will be able to buy more fertilizer. Then they grow more food and that will push food prices back down.

Buy Verde Agritech to bet on rising fertilizer prices. Trust me. 

 

Fertilizer price index can be found here.