Seeking Alpha

Proposed ethanol mandate bearish for fertilizer demand, Cowen predicts

  • The EPA's proposal to reduce ethanol mandate requirements represents a setback for fertilizer producers, Cowen analysts say; the reduction could negatively impact corn markets, driving prices below $3.50/bushel which in turn also would impact demand and pricing for fertilizers (Briefing.com)
  • The firm believes the proposed changes present setbacks for corn growers and fertilizer producers of all types but especially nitrogen producers, since nitrogen is applied heavily to corn acres and soybeans get a negligible application of nitrogen.
  • Cowen foresees a negative impact on POT, AGU, MOS, IPI and to a greater extent on CF, RNF and UAN.
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