Fertilizer stocks: In deep manure
For all the hue & cry about emerging economies, 3 billion new capitalists, a new bull in agricultural commodities and what not, take a look at how the big fertilizer stocks are doing:
Potash (POT) - a bellwether for the agriculture sector - was down 27% just yesterday. Mosaic closed down 41%. Those 3B mouths aren’t going away any time soon, but translating that to sky-high equity valuations doesn’t last too long either.
On a somewhat related note, prices of soybeans & palm oil have collapsed in recent weeks: India soybean seen down on Malaysian palm, supplies
Given a near-normal monsoon in India, and double-digit drops in most commodities, how long before we see an (ahem, voter friendly) impact on WPI data?
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