8 Comments
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Jude Climacus's avatar

your conflating "fertilizers" with "urea". I'd be more specific by saying nitrogen fertilizers or urea.

Aurelion Research's avatar

Fertilizers in general. Wanted to focus more on China and Urea.

Steve Shaw's avatar

Better late than never

Aurelion Research's avatar

We always been bullish.

Sphaera Global Research's avatar

Great outline - I agree with all except fertilizer but did find your argument persuasive especially the China Urea piece. I definitely think some fertilizer companies will benefit from super El Niño, you can see it in the last El Niño. Great charts on supply!

Jürgen Boß's avatar

Hormuz is far from over. Iran is contemplating preemptive strikes now (https://www.iranintl.com/en/202609014196). The fanatics are solidly in charge. The US will get barrels through, but they will demand some kind of risk premium for it. And there is all the hassle with ship to ship transfer.

Where you're flat out wrong is the crack spread. Ukraine is currently producing 10 million drones/year, reaching 20 million drones/year some time next year. That means Russia is a product importer now and will continue to be for the foreseeable future.