Q: Hi Peter and Team,
In the event that the US decides to get its potash from Russia (Trump and Putin are now and always have been close buddies), what effect will that have on Nutrien? It's been a volatile holding for us, but we've held on to it, I'm concerned that if it loses a lot of its export market to the US, it's going to tank. Your thoughts?
In the event that the US decides to get its potash from Russia (Trump and Putin are now and always have been close buddies), what effect will that have on Nutrien? It's been a volatile holding for us, but we've held on to it, I'm concerned that if it loses a lot of its export market to the US, it's going to tank. Your thoughts?
5i Research Answer:
If the US were to shift its potash imports from Canada to Russia, NTR would be negatively impacted. The US is one of the largest consumers of potash, and NTR is one of the world's largest potash producers, which relies heavily on the US. NTR could mitigate this by expanding into new markets or finding new ways to increase its operational efficiencies, though. It is highly uncertain right now, but we will know more in the coming weeks and months, and for now, the stock is holding up fairly well given the stabilization in potash prices.