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Fertilizer input prices rise, but CF Industries, CVR Partners, LSB lag
The outlet links fertilizer margin support to historically wide U.S.-Europe natural gas spreads even as the stocks later slipped from spring highs.
Fertilizer inputs moved higher again in September after prices had eased in August, with MarketBeat Ratings pointing to the immediate impact of the Strait of Hormuz closure as a driver behind strength in components such as ammonia, phosphates, urea, and potash.
MarketBeat Ratings said many fertilizer-sector stocks rose in unison during the initial shock, but then declined once input-price growth normalized, framing the trade as increasingly driven by spreads rather than raw input prices.
The outlet highlighted CF Industries, CVR Partners, and LSB Industries as trading at discounts to their strong margins, while adding that Europe could face greater pressure this winter because natural gas prices there are reaching historic differences versus the U.S.
Latest closeNat gas $3.251 ▼1.4%