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Fertilizer Stocks Are Coming Back to Earth, Dragged Down by Falling Crop Prices

Falling crop prices are threatening what has been one of the surest bets in the stock market over the past two years.

Shares of fertilizer makers, including Mosaic Co. (US.MOS) and CF Industries Holdings Inc. (US.CF), have been dragged down in recent weeks by declining prices for corn, wheat and other crops. Though fertilizer stocks remain above where they traded before the pandemic, they have since spring shed much of their 2022 gains.

In mid-April, Mosaic and CF were up 99% and 55% for the year, respectively. Though they have tumbled since, they remain among the better performers in the S&amp P 500 this year. Mosaic has added 13%, and CF has gained 18% in 2022, compared with a 19% decline in the broader stock index.

Competitors Nutrien Ltd. (US.NTR), Corteva Inc. (US.CTVA) and CVR Partners LP (US.CVI) have traded in similar arcs.

Supplies of grains and fertilizer are low around the world and energy prices are high, which should keep food and fertilizer prices inflated through 2023, said Tracey Allen, commodity strategist at JPMorgan Chase &amp Co.

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A fertilizer shortage, worsened by war in Ukraine, is driving up global food prices and scarcity (NL.ISAE) (US.NTR) (US.MOS) (US.CF)


Russia also exported 11% of the world’s urea, and 48% of the ammonium nitrate. Russia and Ukraine together export 28% of fertilizers made from nitrogen and phosphorous, as well as potassium, according to Morgan Stanley. Disruptions of those shipments due to sanctions and war has sent fertilizer prices skyrocketing. High grain prices are rising even more.


a fertilizer shortage worsened by war in ukraine is driving up global food prices and scarcity 2022

Cramer’s lightning round: Go long on Hertz (US.HTZZ )


Hertz Global Holdings Inc (US.HTZZ): “Let it run. ... Be long, Hertz.”&nbsp

Olin Corp (US.OLN): “The pricing is not going to hold up. I want you to be careful with that one.”

CF Industries Holdings Inc (US.CF): “Fertilizer plays tend to be very volatile. Take out half [your CF Industries shares], play with the rest.”

Crocs Inc:(US.CROX) “I’m going to say, avoid.”Canopy Growth Corp: “It’s too low to sell at $7.”

JD.Com Inc (US.JD): “My take is this: I don’t want you there, okay? Too risky"


cramers lightning round go long on hertz 2022

Investors should watch for these five agriculture stocks, Jim Cramer says


Cramer said that while investors don’t have to own the full basket of agriculture stock picks, these five are great options: Archer-Daniels-Midland (US.ADM) ,Corteva (US.CTVA), AGCO, Deere (US.DE), Tractor (US.TSCO), “I think they’re winners, and if they go down, buy even more,” Cramer said. He also offered a short list of fertilizer companies that could be investable, though he said they are riskier to own than the agriculture stocks he listed. Here is the list of fertilizer companies: CF Industries (US.CF), Mosaic (US.MOS), Nutrien (US.NTR).&nbsp


investors should watch for these five agriculture stocks jim cramer says 2022