Potash prices have trended lower year-to-date, challenging Canadian fertilizer company Nutrien (TSX:NTR, Financial). Though sales volumes have held steady and the stock rebounded off its March lows, reduced prices for its primary earnings driver proved to be a headwind in the quarter. While there are some concerns about potash pricing moving forward as a competitor readies a large Canadian mine that is expected to provide a significant boost to potash capacity, we believe Nutrien’s cost structure will allow it to remain competitive in what we view as a stable business.
From First Eagle Investment (Trades, Portfolio)'s Global Value Team second-quarter 2020 commentary.
