All Posts from January 12, 2021

Fertilizer Stocks Outperform After Grains Rise on Bullish Data

Fertilizer stocks outperformed on Jan. 12 after bullish USDA World Agricultural Supply and Demand data for January sent the prices of corn, soy and wheat surging. Earlier, corn and soybean futures in Chicago jumped to six-year highs after the U.S. cut stockpiles, reflecting strong demand; Wheat also advanced. CF Industries rose as much as 6.6 percent, Mosaic 7 percent, Nutrien 6.7 percent and Intrepid Potash 11 percent, according to Bloomberg.

The news also had an impact on fertilizer prices, with NOLA urea and phosphates showing continued strength.

Antitrust Claim Lodged Against Crop Input Companies

An antitrust claim has been lodged in federal court against Bayer AG, Corteva Inc., BASF Corp, Syngenta Corp., Nutrien Ag Solutions, Growmark Inc., and other crop input producers and wholesalers/retailers, alleging that these companies are violating state and federal antitrust laws through a coordinated boycott of e-commerce sales platforms like Farmers Business Network and AgVend Inc.

Attorneys for the plaintiff, a farmer’s widow who oversees his estate, have asked the U.S. District Court for the Southern District of Illinois to certify the case as a class action. Other companies targeted by the complaint include Cargill Inc., Winfield United, Univar Solutions, Inc., CHS Inc., Tenkoz Inc., Federated Co-operatives Ltd., and the J.R. Simplot Co. subsidiary Pinnacle Agriculture.

A BASF spokesperson told Bloomberg Law in a Jan. 11 statement that the company “strongly disagrees with the allegations in the lawsuit, and intends to defend itself vigorously.” A Nutrien spokesperson told Bloomberg that the company denies “all allegations of wrongdoing” but declined to comment further on “the potential litigation.”

Canpotex Sold Out Through March

Canadian potash exporting group Canpotex Ltd. is “fully committed” through March due to strong offshore demand, the company confirmed on Jan. 12, according to Bloomberg. The company noted that demand is supported by “solid fundamentals” for major crops in various growing regions and it has this sold-out position without new contract settlements with China and India.