UAN: Fertilizer company (little under a billion market cap atm) selling ammonia-nitrogen enrichment products, excellent balance sheet and tax credit stream for its environmentally sound process improvements. Most definitely undervalued, and always quick to distribute its cash flows (in “special” dividends, not regular, for any options traders out there).
Cereals are a giffen good, so when food prices are up or budgets tight, you can expect grains to get pricier. If food costs soar, this holding will support you a bit. If food prices are low, your dividends may not be high but your food costs were low to make up for it (hence calling it a hedge).
Big competitor countries would have been Russia/etc, but those markets are closed off and their nitrogen enrichment likely going to explosives.
And if America needs to ramp up war production, it’s factories would probably be good candidates (although we will always need nitrogen products for agriculture primarily).
Worth taking a look at if you want some positive exposure to food production costs.
[link] [comments] https://www.reddit.com/r/stocks/comments/12yucwt/good_food_inflation_hedge_for_those_who_can/
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