To: Johnny Canuck who wrote (51261 ) 1/29/2015 9:01:27 AM From: E_K_S Respond to Re: Fertilizer companies no increasing demand from our CORN indicator, I did get an alert earlier this week on UAN : CVR Partners' nitrogen fertilizer manufacturing facility is the only operation in North America that uses a petroleum coke gasification process to produce nitrogen fertilizer and includes a 1,225 ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate unit, and a dual-train gasifier complex having a capacity of 84 million standard cubic feet per day of hydrogen in the last month the company's price has risen over 30%. So where has the increase come from? If we look at UAN prices for the last month we see the Gulf price of UAN rising from $230 to $270 while retail prices are still drifting lower, most likely because it has been produced at lower input prices in the last quarter. Furthermore, the price of ammonia has seen a similar rise of 15% with corn prices helping along since October. This increase in UAN and ammonia prices means that an up to 15% increase in revenue is much more likely for the company's first quarter of 2015. Therefore, specifically to UAN, I do not see the recent run in it's stock price holding and it could even fall back to lower levels. I have a 50% position but no new buys from me until I see CORN move above $30.00/share.
