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Shares of fertilizer makers surged Monday after the weekend assault on Israel from Hamas stoked issues over how the battle might affect global supplies of nutrients used to develop meals crops.
Mosaic (NYSE:MOS) and CF Industries (NYSE:CF) ranked among the many day’s largest gainers on the S&P 500, closing +6.8% and +6.3% respectively, and Nutrien (NYSE:NTR), the world’s largest potash producer, ended +3.9%.
The Port of Ashdod, simply north of Gaza and a key hub for Israel’s potash fertilizer exports, is in emergency mode on account of the battle, which Scotiabank’s Ben Isaacson mentioned locations as a lot as 3% of world potash provide in danger.
If Iran, a crucial Center East exporter of nitrogen, is drawn into the battle, Isaacson mentioned costs of the nutrient wanted for grain manufacturing might spike as a result of restricted provide and potential premiums in benchmark Dutch TTF pure gasoline, a commodity used to make nitrogen-based fertilizers.
Potential involvement of Iran within the battle might endanger motion of vessels via the Strait of Hormuz, via which one third of traded liquefied pure gasoline passes, Isaacson mentioned.