- Growers have the incentive to increase production as prices of corn, soybean, and wheat are 50 to 90 percent higher than the 10-year average. It means higher demand for fertilizers.
- Potassium chloride (muriate of potash) monthly price increased from $202 per tonne in April 2021 to $562 per tonne in April 2022, up 178%.
- Due to the sanctions against Belarus’ potash, and Russian & Chinese fertilizer export ban, I estimate an average realized price of $650 per tonne for NTR's potash in 2022.
- Using the CCA method, I estimate that the stock is undervalued and has more than 20% upside potential to reach $119.
- However, I suggest ICL over NTR and other fertilizer stocks.
For further details see:
Nutrien: The Stock Is Still Undervalued