Agriculture
Commodities: Gold and Zinc Crush it in Q1, Energy Gets Smoked
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Commodities: Gold and Zinc Crush it in Q1, Energy Gets Smoked
The start of 2016 has been a roller coaster for investors.
Global markets had their worst ever start in the first trading days of the year, with the S&P 500 eventually shedding 10.5% by early February. Stocks have rebounded since then, but tension is still in the air with record longs on the VIX Volatility Index.
Precious Metals
For this reason, among many others, investors piled into precious metals in Q1 of 2016. Gold finished up an impressive 15.9%, buoyed by record buying in gold ETFs. Meanwhile, silver and platinum, which are considered precious metals with more industrial uses, were also up in Q1 to a lesser extent: 9.4% and 6.6% respectively.
Base Metals
Base metals were all over the map in the first few months of the year. Zinc shot up a surprising 20%, though it has been overdue for a bounce back since hitting five-year lows in 2015. Nickel and copper, however, did not perform as admirably. Nickel was in negative territory (-3.1%) and copper ultimately ended up flat, despite a large rally in February and early-March.
Energy
The energy sector had no real winners, with WTI crude, natural gas, and uranium all ending up in the red. Natural gas was the worst of these with a steep -17.0% drop as it continues to eye multi-decade lows. Some analysts expect more downward pressure on natural gas now that the quantity of gas in storage is 34.2% higher than the five-year average.
Food
The world’s key agricultural commodities were a mixed bag in terms of performance. Soybeans jumped 4.2% in value, but wheat (1.0%) and corn (-0.3%) only had subtle changes in prices.
With many looming questions for Q2, we’re sure that our next quarterly update will be just as eventful. Concerns around a potential Brexit, negative interest rates, stagnating manufacturing, and a potential U.S. rate hike could make for a particularly interesting time period.
Chart presented by: First Mining Finance Corp.
Agriculture
The Fertilizer Market: 4 Things Investors Need to Know in 2023
What factors are impacting the fertilizer market in 2023? Here are four trends driving global fertilizer demand.
4 Things Investors Need to Know About the Fertilizer Market in 2023
Food security is of crucial importance many reasons—from ensuring both political and social stability, to supporting the health of the global economy.
You may be surprised to learn that fertilizer plays a crucial role in food security by enhancing the quantity and quality of harvests. In short, fertilizers can make food more affordable and accessible.
The above infographic sponsored by Brazil Potash digs into four major trends currently impacting the demand of fertilizer. Let’s break them down here.
1. Feeding 10 Billion People by 2050
The world’s population is increasing rapidly and is expected to reach nearly 10 billion by 2050. This growth is particularly strong in developing countries where food security is already strained.
As the population grows, more crops are needed to support global food systems. Increasing crop production is essential and the fertilizer market is a critical ingredient in improving crop yields.
2. Less Farmland
After around 10,000 to 12,000 years of reshaping land for agriculture, the amount of arable land on earth is declining.
Based on the agricultural expansion predicted to take place between 2010 and 2050, an estimated 593 million hectares of agricultural land—nearly twice the size of India—will be needed.
With little room left to grow, fertilizers will take on an increasingly critical role in boosting crop production.
3. The World Needs More Fertilizer
The global fertilizer market was valued at $163.2 billion in 2021 and is expected to reach $203.5 billion by 2027, growing at a CAGR of 3.9% during period of 2022-2027.
As population growth continues to drive demand for increased crop production, investment in fertilizer production is essential to meet this growing demand.
4. The Global Fertilizer Supply Chain
Supply chain disruptions in the fertilizer market puts global food security at risk.
Farmers’ ability to access a consistent and affordable fertilizer supply directly affects crop yields, production, and food prices.
Increasing the supply of domestically produced fertilizer in countries heavily reliant on imports will support low-cost, sustainable, in-market fertilizer for farmers who need it.
Let’s break down the top five fertilizer-exporting countries based on value, according to Statista.
| Country | Value of Fertilizer Exports, 2021 |
|---|---|
| 🇷🇺 Russia | $12.49B |
| 🇨🇳 China | $11.47B |
| 🇨🇦 Canada | $6.61B |
| 🇲🇦 Morocco | $5.71B |
| 🇺🇸 United States | $4.05B |
On the other hand, here are the top five fertilizer-importing countries, based on value from the same source.
| Country | Value of Fertilizer Imports, 2021 |
|---|---|
| 🇧🇷 Brazil | $15.16B |
| 🇺🇸 United States | $10.29B |
| 🇮🇳 India | $9.12B |
| 🇫🇷 France | $2.8B |
| 🇨🇳 China | $2.77B |
Russia currently dominates the fertilizer market as the largest exporter based on dollar value at approximately $12.49 billion dollars, while Brazil is the largest importer of fertilizer based on an import value of approximately $15.2 billion dollars.
Investing in Brazil
Large agricultural producers that rely heavily on fertilizer imports, such as Brazil, would benefit from a local supply that farmers can easily and affordably access to improve crop production.
Fertilizer company Brazil Potash is engaged in the extraction and processing of local potash ore to increase yields and strengthen crop growth in Brazil.
Interested in learning more? Click here to learn about how you can invest in the fertilizer market with Brazil Potash.
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