2 Fertilizer Stocks to Buy Now to Bet on a Continued Strait of Hormuz Closure

Fertilizer prices are going up as a result of tensions in the Middle East, with a continued closure of the Strait of Hormuz restricting the supply of natural gas. Natural gas is vital in the production of ammonia, urea, and urea ammonium nitrate (UAN), among other things. In fact, natural gas accounts for as much as 90% of the cost of ammonia. Similar supply shocks are possible in the manufacturing of sulphur-based fertilizers, as sulphur is a byproduct of oil refining and natural gas processing. These sup ...