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Phosphate Producers Poised to Benefit from Tight Grain Market

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"As grains prices rise, so does the incentive for farmers to apply fertilizer to maximize yields. Grain prices have skyrocketed in the past year."

Potash Investing News, Leia Toovey

The recent earnings season was record-setting for many fertilizer producers, and despite a shaky global economy analysts expect that high-profits will continue into the foreseeable future. High-earnings are a result of record sales volumes, and recovering fertilizer prices.

The price of fertilizers closely tracks the price of grains because as grains prices rise, so does the incentive for farmers to apply fertilizer to maximize yields. Grain prices have skyrocketed in the past year, with wheat prices jumping 11%, corn prices 69%, and soybeans 31%. When comparing fertilizers, phosphates and potash typically have a longer term impact on yields, and therefore are benefiting from the rapid rise in grains prices. . .View full article

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