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3 Fertilizer Stocks Booming with Rising Food Prices

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11.10.2021

As food prices continue to rise due to supply chain constraints and low agricultural output, the fertilizer industry should benefit. So, we think it could be wise to bet now on fundamentally sound fertilizer stocks Nutrien (NTR), The Mosaic Company (MOS), and Intrepid Potash (IPI). Let’s discuss.

Supply chain disruptions, transportation issues, labor shortages, and the negative impact of climate change on agricultural output continue to drive food prices higher. According to the UN Food and Agriculture Organization’s (FAO) monthly Food Price Index, global food prices rose nearly 33% in September 2021 compared to the year-ago period.

Furthermore, rising population and dietary shifts are expected to increase food demand, helping the fertilizer industry grow. According to a Global Market Insights report, the fertilizer market is expected to grow at a 2.4% CAGR from 2021 to 2027.

So, we think it could be wise to scoop up the shares of fundamentally strong fertilizer stocks Nutrien Ltd. (NTR), The Mosaic Company (MOS), and Intrepid Potash, Inc. (IPI). They are expected to generate significant returns in the coming months.

Nutrien Ltd. (NTR)

Headquartered in Saskatoon, Canada, NTR provides crop inputs, services, and solutions. The company operates through four segments: Retail Ag Solutions (Retail); Potash; Nitrogen; and Phosphate. Its offerings include potash, nitrogen, phosphate, and sulfate products, and it also distributes crop nutrients, crop protection products, seeds, and merchandise products through approximately 2,000 retail locations.

On July 29, 2021, NTR announced its partnership with EXMAR to develop and build a low-carbon, ammonia-fueled vessel. Raef Sully, the company’s Executive Vice President and CEO of Nitrogen and Phosphate, said, “This initiative demonstrates how we are taking action to achieve our........

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