Understanding the primary uses of phosphate is key to finding ways to invest in it. 90 percent of phosphate goes to agriculture, for example.

Because of its essential properties and the fact that there is no substitute, phosphate can also be found in fertilizer products around the world to help plant growth. It can also be used in animal feed as an additive, food preservative, and many other chemical purposes.

The demand for phosphate fertilizer will only increase as the world's population increases and the food supply grows. Phosphate investing has been deemed attractive by some. For a quick overview of the phosphate industry, including demand and supply dynamics, and investment options, please read on.

This article continues beneath the Agriculture Investing Table of contents.

Agriculture Investing Table Of Contents

These articles provide an overview of agriculture investing from Agriculture Investing News.

Start Investing in Agriculture

• How to invest in agriculture
• How to Invest in Agriculture: Food Security is Key
• Fertilizers: What is the Difference between Potash and Phosphate
• What is Potash Investment?
• Potash Fertilizers - What is the Difference between SOP and MOP?
• Ten Top Countries for Potash Production
• Introduction to Phosphate Investing
• Country-specific Top Phosphate Mining Production

Phosphate investing: Supply and demand

According to the US Geological Survey, global phosphate production was 223 million metric tonnes (MT) in 2020. This is slightly less than 227 million MT reported in 2019.

China, which produced 90 million tonnes of phosphate rocks last year, was by no means the largest phosphate rock producer. With a production of 37 millions MT, Morocco and Western Sahara are in second. From mines in Florida, North Carolina and Idaho, the US produced 24,000,000 MT of phosphate rocks in 2020.

There are many other countries that have phosphate-mining programs, such as Russia, Tunisia and Jordan, Brazil, Israel.

The largest phosphate reserves are located in Morocco and Western Sahara. This region is home to approximately 70% of the world's phosphate reserves.

The demand for phosphate has steadily increased over the past few years. It was 40.6 million MT in 2012 and is projected to rise to 50.5 million by 2022.

As we have already mentioned, the growing world population and the need for crop nutrients will continue to drive demand.

To meet future growth and growing demand, it is evident that the phosphate sector will need to explore mining expansion options and increase exploration activities.

Consider stocks when investing in phosphate

Some investors are curious about how to invest in phosphate, with the future looking bright. Although there are many ways to do this, phosphate investing can be more difficult than investing in gold or silver.

An exchange-traded fund with exposure to phosphate can be a way for investors to invest in phosphate. One example is the VanEck Agribusiness Exchange Traded Fund (ARCA:MOO). Market participants prefer to invest in phosphate-focused businesses. These are the three largest producers.

• Nutrien (TSX:NTR,NYSE:NTR)
• Mosaic (NYSE.MOS)
• Vale (NYSE:VALE)

Here is information about smaller phosphate companies who have been working to progress their projects. This includes firms listed on TSX Venture Exchange.

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Securities Disclosure - I, Melissa Pistilli have no direct investment in any company mentioned.

By: Melissa Pistilli
Title: Ways to Invest in Phosphate
Sourced From: investingnews.com/daily/resource-investing/agriculture-investing/phosphate-investing/ways-to-invest-in-phosphate/
Published Date: Mon, 15 Nov 2021 21:53:52 +0000

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