Fertilizer Shortages

* Today’s NYT has an interesting article, filled with pictures, charts and video describing the global fertilizer shortage.

* For help understanding “scarcity economics”, read Jim Jubak’s latest article: Why we’re stuck with insane prices

As with every market bubble, we’re all looking back with 20/20 hindsight and thinking: “this agriculture boom was just so obvious!” In this case, I feel pretty good because I’ve owned Potash and John Deere for about a year, catching huge gains in both stocks. Even so, of course I wish I had been a couple years earlier!

Setting aside moral concerns for now (and I certainly have some), the recent sell-off in the sector could be a good time to initiate or add to positions. The demand for agricultural products — especially fertilizer — is white hot and not likely to decrease anytime soon.

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