Q: NPK seems to be on a bit of a break out the last few days. Do you feel that is due to fertilizer prices? Nutrien has gone down because of accepting lower prices in China while NPK has only 3% of the market in Brazil where they have plenty of room to expand their market. Are the prices in Brazil , where they use a lot of fertilizer ,rising or falling? Is the currency in Brazil strengthening or weakening? Thanks, as always
Dave
Dave
5i Research Answer:
It appears that there is no 'real' news for the stock price action seen over the past week and month. We see that fertilizers as a broad category have seen mixed to negative trends over the past 6 months. Considering the strength in the US dollar, the Brazilian real has weakened against it, especially over the past year.