Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hi Nathan, yes, the cheap natural gas boon for US/Canadian nitrogen fertilizer companies is an interesting angle. I expect natural gas prices to gradually rise (and with it PDS's share price), though I expect we should still have a significant advantage over most of Europe and Asia for many years in this regard.

Nevertheless, nitrogen, of course, is wildly abundant on earth (particularly in our atmosphere), so it seems to just be a matter of cost, while viable sources of phosphorous and potassium are much more constrained and I think will run out (though likely not for quite a few decades). In any case, it's interesting to ponder the short-, mid- and long-term cost/supply dynamics of nitrogen, potassium and phosphorous, all of which appear to inevitably be in higher demand with increasing food-supply pressures, particularly if you throw in potential agricultural disruptions due to climate change (not encouraging, though good to prepare for).

I suspect I am not the only one looking for other agriculture-related options now that Yongye's days appear numbered (probably going private, though who knows).
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.