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The global fertilizer investment will vary with the crop price increase recovery
Source:China fertilizer   Time:2014-10-24   Read:538second  
9-10 month is the world's precious metals market active period, investors tend to increase in the precious metals industry investment in this period, but this year the market is better than in previous years that animating, so investors may want to consider other ways of investment demand, such as the chemical fertilizer market concerns, but investors must first understand the chemical fertilizer market. Crop prices are positively associated with chemical fertilizer market Recently, some foreign media reports, special fertilizer market shares are relatively strong, see a stock is usually should start from the trend of the price of crops. At present, the global crop prices have bottomed out, for investors, this is a good opportunity for hunters. Fidelity raw material company manager Tobias Welo said: "in the past few years, corn, wheat and soybean drought, always in rainy etc. in different seasons, at present crop prices have fallen from $8 per Bushell dropped to $3.5 per Bushell, has reached into the crop production line. We think, crop prices in the lower level is only temporary, does not mean that our investment facing difficulties. On the contrary, I feel this period of intervention by the supply and demand of the invisible hand, will have a good effect on the market." In general, a lot of people think that the price of fertilizer and crop prices are positive correlation. Royal Bank of Canada analysts pointed out that the determinants of price promotion include fertilizer effect, the stability of balance and relatively tight supply and demand environment. "Despite lower crop prices are likely to continue for at least six months to a year, but we do think that this period is the best period of fertilizer market investment. In recent years, the United States area nitrogen fertilizer industry remained relatively strong momentum, from a long-term point of view, the fertilizer industry will gradually warmer." In the long run, agriculture related industries including fertilizer and seed technology, water treatment, irrigation systems, the global shipping, agricultural land prices and agricultural equipment have better profit forecast. However, some investors see the short-term price decline will often stop. For example, although this year the North American high yield of corn, but because the crop prices are at a relatively low level, investors expressed disappointment; and, like the Canadian Potash Corp after the BPC Union disintegrated, potash sales prices, revenue downturn also allow investors could not see the situation. In fact, Warren Buffett has a famous saying: the best investment return period from "people fear when". Investors should not only see the price decline of representation, and to look at the problem from the perspective of association. Agriculture is a long-term investment Experts say investors by deliberate analysis and utilization of multi methods and investment in agriculture. Agricultural investment and a lot of high return on investment in different industries, this is a long-term investment process. Investment in the global food industry is very forward-looking, small and many times the investment can obtain the corresponding reward. At the same time, the fidelity of raw materials companies are following the industry dynamic new. Since 2013, Ural potash potash exit BPC League after a time of global potash prices fell sharply from the BPC collapse before the foundation of $400 a tonne on. Subsequently, the fidelity of raw materials companies the analysts believe that the future of potash fertilizer prices will hit rock bottom rebound, rebound in prices are good prospects. Many analysts have said in recent years, with the increase in the global population is growing and of food demand, the global fertilizer demand is steadily upgrading. If this trend is consistent with the predicted, then regardless of nitrogen and phosphate fertilizer or fertilizer demand will increase steadily. Some time ago, the Royal Bank of Canada the analysts has been given "evaluation in line with market performance", recommended to the fertilizer commodities investment, so in the future, it can be expected that the global fertilizer market large bounce.
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