Seeking Alpha

Fertilizer stocks are hit after the USDA reports corn stockpiles are 150M bushels larger than...

Fertilizer stocks are hit after the USDA reports corn stockpiles are 150M bushels larger than expected. Mosaic (MOS -6.9%) shares hit a 52-week low; CF Industries (CF -7.3%) also slides. But chicken producers Sanderson Farms (SAFM +4.3%) and Tyson Foods (TSN +4.3%) gain, along with pork processor Smithfield (SFD +4%), benefiting from lower animal feed prices.
Comments (7)
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Grain statistics are like Durable goods.....they are all over the map....next month...down 300 million....or a hail storm...or rats ate it all...
    30 Sep 2011, 11:44 AM Reply Like
  • spald_fr
    , contributor
    Comments (2702) | Send Message
     
    Why would fertilizer stocks take a hit? It's harvest season. Fertilizer won't be used until next spring.
    30 Sep 2011, 11:58 AM Reply Like
  • Obamitall
    , contributor
    Comments (201) | Send Message
     
    spald_fr
    It's planting season somewhere in the world right now, and POT issued a forward that the company expects increased demand this next Q.
    Also, one of the majors, MOS(?), announced price increase to India.
    Personally, I'll hold POT 'till next year if need be. Covered calls help to buffer the short term swings in price.
    1 Oct 2011, 06:58 AM Reply Like
  • spald_fr
    , contributor
    Comments (2702) | Send Message
     
    Obamitall, thanks for your response.

     

    Fertilizer is about $600 per ton, hardly valuable enough to ship around the world. At that price, local supply (at least from the same continent) would likely prevail, thus my statement above. Granted, my thinking is skewed towards the North American market and thus the disconnect with you.
    1 Oct 2011, 10:52 AM Reply Like
  • Windsun33
    , contributor
    Comments (4254) | Send Message
     
    Last year China imported over a million tons, so your theory does not hold up very well.

     

    http://seekingalpha.co...
    1 Oct 2011, 01:17 PM Reply Like
  • maverta
    , contributor
    Comments (329) | Send Message
     
    youngman,

     

    I need your opinion. I am long on Cf and getting,illed. is there any reason to sell down here or can we bounce? thank you.
    30 Sep 2011, 12:01 PM Reply Like
  • Windsun33
    , contributor
    Comments (4254) | Send Message
     
    USDA figures and projections for crops have long been notorious for being off by wide margins. Just a couple of months ago they overstated by about 200 million bushels.
    1 Oct 2011, 01:15 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|