Draught And Delays In Potash Contracts Stifle Earnings But Outlook For Agrium Remains Positive

The delay in the signing of new potash contracts with India and China continues to weigh heavily on fertilizer producers. Agrium Inc (AGU) is the latest to report a significant drop in earnings. The Canadian fertilizer producer's quarterly profits dropped by 56 percent compared to the same quarter of last year. Moreover, the company is also expecting a weaker fourth quarter due to the same reasons.

Agrium is a major North American fertilizer producer with exposure in potash, phosphate, and nitrogen. The company produces and markets agricultural products to both wholesale and retail customers.

A steep decline in prices of agricultural commodities across the globe due to capacity expansions and an increase in natural gas prices are key risks to our analysis. Read more