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

Money Control Place

Investing

How to Invest in Phosphate (Updated 2024)

by April 5, 2024
April 5, 2024
How to Invest in Phosphate (Updated 2024)

Discovering ways to invest in phosphate begins with understanding its primary uses.

Notably, about 90 percent of phosphate is consumed by the agriculture sector. Because of its essential properties, and since there is no known substitute for it, phosphate can be found in fertilizer products all over the world as a way to aid plant growth. It is also used as a supplement in animal feed, as a food preservative and for several other chemical purposes.

As the world’s population grows and demand for food increases, the need for phosphate fertilizer is only expected to increase. For that reason, some believe phosphate investing is compelling. Read on for a brief overview of the phosphate market, including supply and demand dynamics and investing options.

What factors impact phosphate supply and demand?

The US Geological Survey’s latest report on the phosphate industry shows that global phosphate rock production came in at 220 million metric tons (MT) in 2023, down slightly from 228 million MT in 2022.

China was the top phosphate rock producer last year by a long shot, putting out 90 million MT. Morocco is in second place with production of 35 million MT; the country also holds about 68 percent of global phosphate reserves. Third in line for production is the US, which produced 20 million MT of phosphate rock in 2023 from mines operating in the states of Florida, North Carolina, Idaho and Utah.

Phosphate is also produced in many other countries around the world, including Jordan, Russia, Saudi Arabia, Egypt, Vietnam, Peru, Tunisia, Brazil and Israel.

In terms of demand, the need for phosphate has been slowly increasing over the last few years. As mentioned, the world’s growing population and the widening need for crop nutrients should keep demand growing steadily well into the future as well.

According to Future Market Insights, the global phosphate market is projected to expand at a CAGR of 2.4 percent between 2023 and 2033 to reach a value of US$21.4 billion by 2033. Demand for nutrient-rich food and specialty phosphates is driving this growth.

‘Phosphates are essential components of fertilizers and soil amendments used to replenish phosphorous levels in the soil,’ the report states. ‘The increasing adoption of modern farming techniques and the focus on sustainable agriculture are further driving the demand for phosphates.’

The International Fertilizer Association estimates that 85 percent of the world’s soils are deficient in nitrogen, while 73 percent are deficient in phosphorus (phosphates) and 55 percent are deficient in potassium (potash).

It’s clear that the phosphate industry will need to look into additional mine expansion and exploration opportunities to meet the growing demand and future growth that is forecast for the sector.

How to start investing in phosphate?

With the future of phosphate looking bright, some investors are wondering how to get into the space. There are certainly ways to do so, although phosphate investing is a little trickier than investing in more mainstream commodities like gold and silver.

One way investors can invest in phosphate is by buying shares of an exchange-traded fund that has exposure to phosphate. The VanEck Agribusiness ETF (ARCA:MOO) is one example. However, most market participants choose to invest directly in phosphate-focused companies. Here are three of the largest producers:

For more information on phosphate and potash companies that have been working to advance their projects, including smaller firms with development-stage projects, check out Phosphate Stocks to Watch, ASX Agriculture Stocks: 5 Biggest Companies and 5 TSX and TSXV Potash Companies.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
What Was the Highest Price for Uranium? (Updated 2024)
next post
House braces for battle over renewing controversial FISA surveillance tool

Related Posts

High-Grade Gold and Copper Assays Open Up Immense...

February 6, 2024

Getchell Gold Corp. Appoints Michael Hobart to Board...

May 22, 2024

Investor Education: Gold and Silver Stock Evaluation with...

September 13, 2023

Top 5 Canadian Mining Stocks This Week: Belo...

February 1, 2025

Drilling Commences at Butcherbird Targeting Reserve Extension to...

May 15, 2024

Nuclear Fuels Announces Completion of Bought Deal Offering,...

January 25, 2024

Atlantic Lithium

August 15, 2023

Sage Potash Closes Private Placement

August 4, 2023

Belararox Raises $2.5 Million Via Placement

June 20, 2023

South Star Battery Metals Announces 2023 Year in...

April 4, 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

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

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    • Jeffrey Christian: Gold, Silver, PGMs — Short-term Prices and Key Drivers

    • Ericsson, Rogers Launch Canada’s First Underground 5G Network for Smart Mining

    • Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump

    Categories

    • Business (1,259)
    • Investing (2,583)
    • Politics (3,699)
    • Stocks (1,669)
    • 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