Copying the here from TF:
Just making this to contain discussion on potential opportunities that we can convert to trade ideas.
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High purity carbon dioxide (CO2) is a byproduct of ammonia production, but it is also a necessary ingredient in the production of urea fertilizer; therefore, the industry captures CO2 emitted during ammonia production and re-uses it during the urea production process. Excess captured CO2 from fertilizer production is also recycled for other industrial use, such as enhanced oil recovery and the carbonization of soft drinks.- [TFI.org](https://www.tfi.org/our-industry/state-of-industry-archive/2017/environment-energy#:~:text=Gas%20Emissions,-Minimizing%20GHG%20emissions&text=High%20purity%20carbon%20dioxide%20(CO2,during%20the%20urea%20production%20process.)
The largest ammonia producing companies in North America are CF Industries, Nutrien, Mosaic, and Yara (Nutrien 2020). Nitrogen fertilizer production facilities operate every day but have limited storage capacity, so fertilizer must be transported to warehouses and terminals for storage. - farmdocdaily.illinois.edu
Fertilizer companies are getting alot of hype on fintwit right now. Plants in Europe are being shut down right now due to high natural gas prices. Although gas prices have rocketed here in the US (natural gas is up 112%), it’s nothing compared to Europe where TTF gas is up 600% YoY. (Trading Economics Commodities Page). This, combined with the sanctions on Russian fertilizer and fertilizer inputs, means US based fertilizer companies are theoretically in a position to capitalize on the impending EU (world?) fertilizer shortage. Remember in April when fertilizer stocks went vertical then crashed down when everyone realized the world wouldn’t starve that summer?
Pepperidge Farm remembers:
Could be another rally in the cards, this time fueled by fundamentals. Fertilizer is in short supply. Fertilizer stocks had quite the week compared to the rest of the market, but there may be room to run. MOS has weekly options, spreads are wide on almost every other fertilizer name right now.
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Urea is also a main ingredient of DEF (diesel exhaust fluid) which is now commonly used in most modern diesel trucks. May have a potential effect on the trucking industry if DEF sees a shortage from the lack of Urea production.
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