Nitrogen and Lithium Continue to Ease Off; Ag Equipment Tariff Relief

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Nitrogen and Lithium Continue to Ease Off; Ag Equipment Tariff Relief

June 5, 2026

Jackson's 5

Nitrogen and Lithium Continue to Ease Off; Ag Equipment Fertilizers & Chemicals

Tariff Relief

Joel Jackson, P.Eng., CFA Analyst

Weprovidethisweek’snotablefertilizer/ag/lithium/methanoldatapointsandchartpack. joel.jackson@bmo.com (416) 359-4250

Evan McCaul, CPA Senior Associate

1) Ag equipment names outperformed this week, war-levered names (CF/MEOH) evan.mccaul@bmo.com (416) 271-1460

treaded water, and the rest of our coverage was weak (notably lithium). Ag equipment Jordan Smith, CFA Associate

strength comes as the U.S. govt dropped tariffs on ag equipment from 25% to 15%. Lithium jordan.smith1@bmo.com (416) 558-9275

stocks slipped this week as prices have been falling, but FMC and ICL also saw large declines. Legal Entity: BMO Nesbitt Burns Inc.

For FMC (which is seeing its short interest start to rise), the market has expected some near-

term catalysts (licensing deal etc.).

2) Takeaways from Canadian investors meetings with CF, which has held in remarkably

Company Ticker Rating Target

well despite urea prices coming off seasonally. Management remains bullish in its FCF

AGCO AGCO Mkt $115.00

generation throughout the cycle, and there seems upside in its own base case mid-cycle Albemarle ALB OP $250.00

earnings scenarios. We surmise the company is currently attacking the buyback strongly. Bayer BAYN Mkt €44.00

3) Nitrogen prices fell sharply (U.S. phosphate fell slightly too), while potash ticked up. CF Industries CF OP $140.00

First, global urea benchmarks fell ~$60-100/t w/w (e.g., NOLA urea down ~$70/st to Chemtrade CHE OP $18.50

CNH Industrial CNH Mkt $11.00

~$440/st). Declines like this around now, seasonally, can be par for the course though this