🌱 Fertilizers and Potash Up 4% YOY. $80M+ VC Funding.
Impact Capital Markets #129 looks at our Fertilizers and Potash Stock Index, major impact deals, M&A, and upcoming economic releases.
Hujambo 🦓
📈 Today's Global Economic Update: Australia's trade surplus in May narrowed to AUD 5.77B, down from April's revised AUD6.03B, as exports struggled, notably iron ore shipments, amidst weak demand from China.
🧬 Deal of the Day: E-therapeutics, a UK-based biotechnology company, raised $36.6M to advance multiple clinical trials.
What's New?
🌱 Fertilizers and Potash. Fertilizers and Potash up 4% YOY
💰 Funding. Biotechnology, software solutions, quantum software + more
💼 M&A. Pharmaceutical company and continuous controls monitoring
📅 Economics. US inflation, UK GDP, balance of trade + more
🌱 Fertilizers and Potash Up 4% YOY
The Fertilizers and Potash index has seen a 4% growth over the past year, driven by rising demand in global agriculture sectors such as cereals, oilseeds, and fruits & vegetables. However, recent months have brought significant challenges, with a notable 12% decline observed in the last quarter. This downturn is primarily due to interconnected factors such as increased shipping costs impacting import-dependent regions like Europe, leading to higher fertilizer prices and market instability. The concentration of potash production among major players such as Canada, Russia, and Belarus has exposed supply chains to vulnerabilities.
Adverse weather in North America, causing delays in spring fieldwork, further reduced fertilizer demand. Additionally, key firms in the index like CF Industries ($69B MCap) faced reduced nitrogen demand due to anticipated decreases in corn planting, historically a major demand generator of nitrogen. Yara International ($77B MCap) also reported sales declines amid economic uncertainty, prompting farmers to delay purchases. Looking ahead, the long-term growth outlook relies heavily on the advancement of sustainable agriculture practices and technological innovations aimed at optimizing product efficacy and expanding global market reach.
💰 Funding
🧬 E-therapeutics, a UK-based biotechnology company, raised $36.6M from M&G Investments and Richard Griffith to advance multiple clinical trials.
💻 Tembo, an Ohio-based software solution company, raised a $14M Series A from GreatPoint Ventures to expand operations and development efforts.
🔧 Kvantify, a Danish quantum software startup, raised a $10.7M Seed from Dreamcraft to establish itself in quantum computing, focusing on life science applications.
🤖 Cartken, a California-based robotics startup, raised $10M to expand its fleet of self-driving carts and scale operations for last-mile delivery.
💼 M&A
💊 Olon Group, an Italian pharmaceutical company, acquired GTP Bioways Group, a French biotech company.
📱 Dedagroup, an Italian IT firm, acquired Quod Orbit, a UK-based continuous controls monitoring (CCM) firm.
📅 Economic Calendar
US inflation, UK GDP, balance of trade + more
Friday, July 5th 2024
🇨🇦 Canada Employment Data, June
🇺🇸 US Employment Data, June
🇨🇦 Canada Ivey PMI s.a, June
Monday, July 8th 2024
🇩🇪 Germany Balance of Trade, May
🇦🇺 Australia Westpac Consumer Confidence Change, July
🇦🇺 Australia WNAB Business Confidence Index, June
Tuesday, July 9th 2024
Thursday, July 11th 2024
🇬🇧 UK GDP Data, May
🇺🇸 US Core Inflation Data, June
🇺🇸 US Inflation Data, June
Friday, July 5th 2024
🇺🇸 US PPI Data, June
🇺🇸 US Michigan Consumer Sentiment (Preliminary), July
🇨🇳 China Balance of Trade, June
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