The Russia-Ukraine crisis is boosting agriculture stocks…
With the invasion of Ukraine, the U.S., European Union (EU), and other allies implemented a series of sanctions against Russia.
This added to existing supply-chain concerns, as Russia and Ukraine are two of the largest exporters of wheat, corn, and other agricultural products.
It also drove a major rise in soft commodity prices worldwide. In fact, wheat futures hit their highest levels since 2018. Meanwhile, corn saw its greatest price gain in over a decade.
These increases fueled a 3.6% rise in the Invesco DB Agriculture Fund (DBA) over the past month. They also helped boost REX American Resources (REX) by 7.8% over the same period.
However, the developments have been an even green boon for fertilizer suppliers. This includes Mosaic Company (MOS).
Mosaic is a Fortune 500 firm that mines phosphate and potash. It’s also the largest U.S. producer of fertilizer based on these elements.
And it has not only been a top performer through the Russia-Ukraine crisis, but it has also seen its share value rise 93% over the past six months.
Even with supply-chain disruptions from COVID-19 and Russia’s invasion of Ukraine, Mosaic has managed to report consistent financial results.
In its February 22 results, the company reported earnings per share of $1.95 compared with the estimated $1.97. Mosaic’s revenue was $3.84 billion, slightly below the expected $3.9 billion.
While these figures were lower than Wall Street’s forecasts, they still represented growth for the company. And with pricing momentum – as well as an outperformance from agriculture stocks – Mosaic’s earnings and revenue may further rise.
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