Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

Agriculture Market Update: H1 2023 in Review for Potash and Phosphate

by July 7, 2023
July 7, 2023
Agriculture Market Update: H1 2023 in Review for Potash and Phosphate

The volatility attached to the cost of fertilizers has created a significant period of uncertainty.

According to experts, the first half of 2023 has been marked by the ongoing debilitating price averages for fertilizers of all types on a global scale.

Price compression affecting industry

This happened in part due to what he described as a self-fulfilling prophecy, as buyers saw prices declining and waited for them to fall further before making purchases.

“But we can’t wait too long, because eventually just-in-time demand meets supply, and that’s a big issue that we’ve had,” Linville said.

He added that prices have shifted quickly as the world has gone from the throes of the pandemic to a recovery period and now to a post-recovery time.

“A kind of a classroom theory that I always work with is that uncertainty generally pushes prices higher,” he said. “And that’s what we dealt with.”

Russia’s invasion of Ukraine leads to volatility

It’s clear the industry has been severely impacted by the conflict between Russia and Ukraine.

Linville discussed the impact of Russia’s invasion of Ukraine and the subsequent sanctions Russia faced from the west. ‘(The market) thought we were losing Russian exports in general,’ he said. ‘They were really one of the biggest exporters of all three major fertilizers.”

But in reality, Russia’s role in the market has not been curbed.

According to a market report, potash is expected to reach a global value of US$23.03 billion this year, representing a 4.5 percent compound annual growth rate (CAGR) compared to 2022.

When it comes to the phosphate sector, the industry is expected to reach a total valuation of US$16.8 billion in 2023 and grow at a CAGR of 2.4 percent over the next 10 years.

Price of fertilizer impact on investment landscape

It’s clear the recovery phase of the pandemic has exposed various industries that flourished during times of chaos and built their future plans based on pandemic numbers.

As the world continues to move away from the more intense crisis days, some industries like the fertilizer space are experiencing growing pains of shaking off the pandemic coating.

“A lot of these plans looked very, very good when these prices were at all-time highs (or) very close to it,” Linville said. “Now all of a sudden, some of these are half of what they were, some of these are a third or lower than what they were, and that return is just not there.”

Investor takeaway

Uncertainty has certainly dominated the landscape for the fertilizer space and the larger potash industry.

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Biden approves disaster funding for North Dakota over snowmelt-induced flooding
next post
Teens, Democrats continue push to lower voting age to 16

Related Posts

Cannabis Round-Up: DEA Proposes Rescheduling, Canada Ignores Company...

May 6, 2024

Have We Reached Peak Oil? (Updated 2023)

June 16, 2023

Critical Metals Corp. F-4 is Effective

December 28, 2023

Appendix 4D and Half Yearly Accounts

February 27, 2025

Blue Sky Uranium Acquires New Projects in Argentina

June 24, 2024

White Gold Corp. Commences Maiden Diamond Drilling at...

August 16, 2023

PDAC Presentation

February 24, 2025

Operations Update

May 23, 2024

F5

September 30, 2023

Canada Nickel Confirms Discovery at Mann Central, Successfully...

February 23, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • 3 S&P 500 Charts That Point to the Next Big Move

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • The Secret To Streamlining Your Charting Workflow

    • Feeling Unsure About the Stock Market’s Next Move? These Charts Can Help

    • The Fed Is Getting It Wrong AGAIN As They Hold Rates Steady

    • Munda Gold Mine Mining Progresses: First Blast

    Categories

    • Business (1,255)
    • Investing (2,573)
    • Politics (3,699)
    • Stocks (1,665)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved