"Fertiliser Boom" is the more accurate description. "Bubbles" are termed such in the financial world because they are formed from nothing but "air" ... hype etc.
However in the case a boom, then we have a fundamental reason for the rise, indicating a re-rating & sustainability of the increase in the underlyng commodity.
The Internet "Bubble" is a classic example of companies going to $100 share prices on the back of nothing but an "idea" .. read: "Bubble"
Many thought that iron ore was a bubble when the price starting going ballistic in 2005 ... 3 years later? Well just check out what Rio have achieved this week! Buuble? .. No. This is a Boom, a complete re-rating of a much unloved & forgotten commodity ... iron.
As we do some research on fertiliser commodities, we get a very similar story. While the market & sentiment goes up & down dependant on many other factors, the shortage of rock phosphate & potash continues to increase. This will last many years. We are in the embryonic stages of a re-rating, a "Boom" that will last for many years.
The reason: FOOD!
cheers
fertiliser bubble, page-4
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