Rising consumer spending is driving the demand for quality fertilizers to produce better crop yields. Also, falling energy prices and technological breakthroughs should enable the industry to improve its production. Therefore, Corteva (NYSE:CTVA) and Mosaic (MOS) are well-positioned to profit well in the upcoming months. But which of these stocks is a better buy now? Read more to find out.Corteva, Inc. (CTVA) and Mosaic Co. (NYSE:MOS) are two prominent players in the global agricultural inputs industry. CTVA is an agricultural chemical company that operates through two segments ─ Seed and Crop Protection. The company develops and supplies advanced germplasm and trait technologies that improve resistance to weather, disease, insects, and herbicides used to control weeds, enhance food and nutritional characteristics, and help produce optimum yield. On the other hand, MOS produces and markets concentrated phosphate and potash crop nutrients. The company operates through three segments ─ Phosphates, Potash, and Mosaic Fertilizantes. It also provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services.
The United States is witnessing decade-high food prices owing to high inflation, rising energy and commodity prices, and global supply chain constraints. Nevertheless, increasing consumer spending this festive season has been surging the demand for fertilizers and crop nutrients to produce better crop quality and yield, driving its prices. To overcome these issues, some countries have stopped exporting their crop nutrients to support their domestic availability.
However, falling natural gas prices (a key ingredient in making nitrogen-based fertilizers) and technological integration in seed sciences to produce genetically modified seeds should help companies produce better crop yields, promote sustainable agriculture, and witness good sales in the upcoming months. So, both CTVA and MOS should benefit.