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Adding pressure to the slide in CF Industries (CF -11.8%) - in addition to falling corn prices -...

Adding pressure to the slide in CF Industries (CF -11.8%) - in addition to falling corn prices - is a report from England-based Profercy research saying that Ukraine gas prices may be set for a "major cut." This will reduce the cost advantage for North American nitrogen-based crop nutrient producers.
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Comments (2)
  • zhellc
    , contributor
    Comments (58) | Send Message
     
    That's bullsh*t. Everybody know NG price has been depressed deeply all along over the last two years.
    17 Nov 2011, 04:13 PM Reply Like
  • dankourny
    , contributor
    Comments (27) | Send Message
     
    The issue isn't the low price of nat gas, it is the fact that the contracted price between suppliers in Russia and fertilzer producers in the Ukraine looks to be cut from $12 per mbtu to 6 per mbtu. This compare to the US price of $3.40 per mbtu (or whatever the appropriate unit is called). So the US producers still have a cost advantage (nat gas is a major input to nitrogen production) but it will be no where near the advantage they have now and may result in greater capacity coming to the global market and depressed selling prices for nitrogen.
    17 Nov 2011, 04:56 PM Reply Like
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