Three Fertilizer Stocks To Grow Your Portfolio
The Dynamic Wealth Report
July 26, 2011
by Corey Williams, Editor
Last week North American potash producers dropped a bomb on the global
fertilizer markets.
Potash is a potassium compound that’s mined primarily for use as a
fertilizer. Around 30 million tons of potash are produced every
year. And about 90% of it is used as a soil fertilizer.
It’s important because proper levels of potassium make crops healthier.
And healthier crops produce more food. With benefits like these,
it’s no wonder demand for potash is surging.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
But there’s an even bigger catalyst behind surging potash demand…
The world needs more food!
According to the US Department of Agriculture, the world’s population is
increasing by 75 million people each year. And they’ve all got to
eat…
But that’s not all. Rising incomes in emerging markets have
shifted diets to include more meat and dairy. And it takes a lot
more grain to feed the animals producing these staples of a high end
diet.
As a result, potash prices have soared.
However, it’s not so easy to meet surging demand for potash.
The problem is areas with high enough concentrations of potash to mine
economically are hard to find. More than 80% of global reserves
are found in just two countries… Canada and Russia.
And these two heavyweights dominate global production as well.
Last year they produced 16.3 million tons or about 50% of all global
production.
But that’s just part of the story… The global export market is
even more lopsided.
Global exports of potash are dominated by two major players… Canpotex
(Canadian Potash Exporters) and Belarussian Potash Corp. These two
companies control 70% of global potash exports!
So when Canpotex said last week their “cupboard is bare,” I knew it was
a major development.
According to Bloomberg, Canpotex only has enough potash to
supply farmers in China or India… but not both!
Last month Canpotex agreed to sell 630,000 tons of potash to China in
the second half of the year. This deal essentially shut the door
on Indian farmers.
Or as CEO of Mosaic (MOS), Jim Prokopanko put it, “This
isn’t a matter of price discussion. This is a matter of supply.”
No doubt about it, potash producers are poised to reap huge profits!
Simply put, nothing drives prices up faster than when demand outpaces
supply. And right now that’s clearly the case.
How can you profit from this imbalance of supply and demand?
Unfortunately, Canpotex is privately owned. So, you can’t invest
directly in them.
The good news is Canpotex is wholly owned by the three largest potash
producers in North America… Potash (POT),
Mosaic (MOS), and Agrium (AGU). And all
three happen to be publicly traded!
Take a look at POT, MOS, and AGU for your portfolio. The coming
boom in fertilizer stocks will be just the thing to get your portfolio
growing this summer.
Share This Story:
Print
Page
Bookmark Us
Home | Whitelist Us |
Terms of Use |
Privacy Policy |
Contact Us | Security |
Site Map