Fertilize My CROPS with CRUDE OIL Please
Just want to get this off my chest. Not only is Jim Cramer and CNBC making sound like Crude Oil prices falling means that Fertilizer is falling.... Fast Money was signalling a death nell to fertilizer for the 1 millionth time or so it seemed to my ears.
This is ridiculous. Investors are swallowing this notion that OIL impacts Fertilizer.
(TRA) Terra Industries is a little bit different in that they carry "Methanol." So, they could get impacted by methanol pricing I suppose. But, I believe TRA got rid of their Methanol producing facility...or was intending too....
Nonetheless.... No one fertilizes their CROPS with CRUDE OIL.
If you want to know the pricing situation with Fertilizer you only need to focus on 1 thing.
(SUPPLY) and (DEMAND).
Right now demand is extremely high and supply is still catching up. So fertilizer stocks (thank you Potash of SasPROFIT-TRON).
Some investors are wondering when the Fertilizer Madness will end....
Wake me up when Supply catches up with Demand. When that happens...Growth Slowdown will hit hard in the fertilizer sector. But, we'll have to wait a few years for that:-)