11:21 AM EDT, 10/03/2025 (MT Newswires) -- RBC Capital Markets Thursday raised its fertilizers sector weight to overweight from market weight, citing the constructive setup for the equities over the next three to six months.

The positive outlook is based on solid agriculture fundamentals based on favorable forward crop prices, and constructive fertilizer fundamentals supporting relatively elevated prices despite recent softness due to seasonality.

RBC also cited conservative consensus estimates with potential for upward revisions and below average valuations in the sector.

According to RBC, nitrogen prices should continue to be supported by still-elevated European natural gas prices, benefiting North American producers that use low-cost domestic natural gas.

Potash affordability remains favorable, which should support steady demand growth and stable prices, RBC said.

Phosphate prices remain very elevated due to tight supply while demand is supported by continued focus on crop yields, RBC added.

Price: 83.66, Change: +0.27, Percent Change: +0.32