A Rebound in Agriculture?
We see better days ahead for potash firms. Morningstar's Seth Goldstein explains.
Seth Goldstein: 2019 has been a rough year for the agriculture sector as flooded U.S. fields have led to the lowest total acres planted in over a decade. Lower acres planted reduced the need for potash. In addition, low palm oil prices further weakened potash demand in Southeast Asia, driving global prices even lower.
Despite near-term challenges, we see better days ahead. For 2020, we expect a full rebound in U.S. acres planted and the recent recovery in palm oil prices to remain in place. Both factors should bode well for potash demand in 2020.
Seth Goldstein does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.