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AGR

Avangrid Inc

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There is no competition in the market. China has completely stopped exports of fertilizer, Morocco can no longer produce any phosphorous as they no longer have access to sulfur at all from the Middle East. Sulfur is not that easy to export logistically, and Mosaic has access to low cost production through natural gas feedstock in the US. Mosaic is as insulated as it gets in terms of input costs, and the product will rise as well, and farmers globally will have to pay the price, because many farmers cannot go a season without applying any phosphorous to their soil. This will then drive up agr commodities, its a real inflattionary chain which stems from much of the worlds energy now being offline.
Can an entire planting season occur with no phosphate applied to the soil? My thought here as well is this is more of a global play, as it'll be much more short globally during the later planting seasons of the global south then it is right now in the states. I also think agr commodity futures will rise enough to be commensurate with the rise in fertilizer prices.
This isn't a normal moment that the agr industry is use to. This is a global shock to a critical input for the worlds food supply, is it not? Doesn't seem like the usual fertilizer is up corn futures are down lets apply less phosphate in the dirt. There is not enough phosphate to apply anything in the dirt now for billions of peoples food.
Customers will buy the product because its the difference between having food and not. Agr commodity prices will reprice upwards as such, globally.
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