- The global food crisis is perhaps the most important issue of 2022, as war, high energy, and fertilizer shortages hamper production worldwide.
- North American producers that offset Russia have risen dramatically in recent months as export demand and prices to Europe skyrocket.
- Top North American fertilizer companies such as CF Industries have garnered a significant competitive advantage due to the high natural gas spread between the U.S. and Europe.
- While CF's 2022 earnings will likely be stellar, its long-term prospects are hampered due to skyrocketing U.S. LNG exports and an associated fall in the energy cost spread.
- Overall, CF Industries is no longer a bullish opportunity and might be overvalued despite rising fertilizer prices.
For further details see:
CF Industries: The U.S. Fertilizer Boom May Soon Become A Bust