As the Russia-Ukraine war continues, fertilizer prices have reached record highs due to supply cuts, helping fertilizer companies expand their profit margins. The cost of food in the United States increased 8.8% in March 2022, according to the U.S. Bureau of Labor Statistics. As a result, fertilizer stocks are also gaining investor attention. This is partly evident from the Invesco DB Agriculture Fund’s (DBA) 10.1% gains over the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 4% loss.
As supply disruptions and high fuel costs are expected to keep driving food prices in the near term, the fertilizer industry is expected to keep thriving. According to The Expresswire report, the fertilizer market is expected to grow at a CAGR of 3.1% by 2026.
