QUOTE AND NEWS
Motley Fool  Jul 11  Comment 
Investors were spooked about rising input costs and falling selling prices, but futures contracts could insulate producers for a few quarters.
Forbes  Jul 8  Comment 
Looking at the sectors faring best as of midday Friday, shares of Materials companies are outperforming other sectors, higher by 2.6%. Within that group, CF Industries Holdings Inc (NYSE: CF) and Alcoa, Inc. (NYSE: AA) are two of the day's...
newratings.com  Jul 8  Comment 
WASHINGTON (dpa-AFX) - CF Industries (CF) is turning in a strong performance in afternoon trading on Friday, with the fertilizer producer currently up by 6.1 percent. The gain by CF Industries comes after BMO Capital Markets upgraded its rating...
Benzinga  Jul 8  Comment 
Forbes  Jul 1  Comment 
Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of CF Industries Holdings Inc (NYSE: CF) were yielding above the 5% mark based on its quarterly dividend (annualized to $1.20), with the stock changing...
Benzinga  Jun 23  Comment 
The outlook for the US nitrogen market has deteriorated from the year-ago levels, which is evident from the roughly 45 percent y/y decline in urea prices to $183/t in New Orleans and to $210/t in the Midwest, Barclays’ Matthew J. Korn said in a...
Benzinga  Jun 16  Comment 
UBS has cut the estimates and price target of CF Industries Holdings, Inc. (NYSE: CF) to reflect the OCI Partners LP (NYSE: OCIP) merger deal termination and slightly lower nitrogen prices. UBS slashed its 2016/2017 EPS estimate to $1.85/2.10...
Forbes  Jun 14  Comment 
In afternoon trading on Tuesday, Materials stocks are the worst performing sector, showing a 1.3% loss. Within that group, CF Industries Holdings Inc (NYSE: CF) and Owens-Illinois, Inc. (NYSE: OI) are two of the day's laggards, showing a loss of...
Motley Fool  Jun 10  Comment 
Just when investors thought things couldn't deteriorate further for the fertilizer industry, the month of May arrived.




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The company is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. The company's operations are organized into two business segments: the nitrogen fertilizer business and the phosphate fertilizer business. The company's principal products in the nitrogen fertilizer business are ammonia, urea and urea ammonium nitrate solution (UAN). The company's principal products in the phosphate fertilizer business are diammonium phosphate (DAP) and monoammonium phosphate (MAP). The company supplies approximately 24% of the nitrogen and approximately 12% of the phosphate used in agricultural fertilizer applications in the United States. North America accounts for 91% of CF's sales

  BULL POINTS

CF is a leader in US nitrogen. The company has one of the highest market shares in the US corn-belt (30% nitrogen, 17% phosphate) making CF the closest pure-play on potential growth in US corn acres tied to corn use for ethanol production. CF is the second largest nitrogen producer in North America with 3.6m tons of ammonia and 2.5m tons of urea capacity. CF is the #3 producer of phosphate fertilizer in North America based on 1m tons of phosphoric acid capacity in Florida. CF Industries is a leading US producer and distributor of nitrogen (75% of sales) and phosphate (25% of sales) fertilizers. The company has a 23% share of the total US nitrogen market and a 12% share of US phosphates.

Phosphate prices are strong due to low stocks, new demand for corn (from ethanol), that has created the largest corn crop since 1944 and significantly in creased acreage and fertilizer application rates. The phosphate market will remain tight next year based on healthy offshore demand growth in India and Brazil and higher application rates in the US. This is likely to lead to higher price and cash margins for various fertilizers. The Phosphate producers have better producer discipline and price leadership by Mosaic under a new team, no new mines until 2011 and offshore demand growth in India, Brazil and Australia.

     BEAR POINTS

Natural gas is the principal raw material, as well as the primary fuel source, used in the ammonia production process. Natural gas purchases accounted for approximately 54% of the total cost of sales for nitrogen fertilizers and a substantially higher percentage of cash production costs. The market price for natural gas in North America is significantly higher than the price of natural gas in other major fertilizer-producing regions. For example, during 2006, natural gas prices in the United States averaged approximately $6.74 per MMBtu and in Canada averaged approximately $5.76 per MMBtu. In comparison, during 2006, natural gas prices paid by fertilizer producers are estimated to have been approximately $1.25 per MMBtu in Russia and approximately $2.65 per MMBtu in the Republic of Trinidad and Tobago. A $1.00 per MMBtu change in the price of natural gas would change the cost to produce a ton of ammonia by approximately $33.

Customer concentration is high, as well. Three customers, Agriliance, GROWMARK, Inc., and ConAgra International Fertilizer Company made combined fertilizer purchases of approximately $944.0 million, representing approximately 48% of total net sales.




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