Julia likes Incitec Pivot, which manufactures and distributes fertiliser and explosives.

“Fertiliser prices have been steadily climbing since July last year,” Julia explains. “There has been a strengthening in the price of corn, which is up 15% in the month of January. Corn and grain prices tend to act as leading indicators for fertiliser demand,” she says.

“While in the previous result the explosives division disappointed, a strong move upwards in commodity prices is expected to help the demand for explosives that are used in mining.

“2021 should be a year where both the fertiliser and explosives business perform well.

“The key risks to a rising share price are a stronger $A and a rise in costs, including gas costs,” Julia adds.

Incitec Pivot (IPL)

Source: Google

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