A
bid premium together with a recovery in the fertiliser market pushed
the share price up to the US$60 level from a low of well below US$30 a
year ago. Although we believe the fertiliser market will remain strong
through to the spring planting season, the good news is already fully
discounted. We were happy sellers into the current market froth.
Fertiliser company Mosaic
looks set to continue to benefit from rising agricultural prices.
These are driving farmers to try to increase crop yields - the only
easy way to do this is by using more fertiliser. Demand is strong on
both phosphates and potash. In respect of the latter, the company is
completely sold out for the next 6 months, whilst prices are up by
14.2% since last year. With strong demand, rising margins and a great
cashflow, Mosaic is once again a buy.
| Sedol |
Type |
Price |
Date |
| B03C4Q6 |
Sell
|
US$ 59.274 |
22/01/2010 |
| B03C4Q6 |
Buy |
US$ 41.975 |
08/08/2007 |
