Our Stock of the Week is Brazil Potash Corp. (GRO). GRO is a mineral development company that is developing the Autazes Project in the Amazon region, which is expected to be Brazil’s largest potash fertilizer project. Brazil is the world’s largest exporter of soybeans, beef, coffee, and sugar, and in 2025, the country set a new record with $169 billion in agricultural exports.
Yet despite being one of the world’s top producing agricultural markets, Brazil imports roughly 97% of its potash. Notably, GRO is in a position to change that calculus, as it already has 10-to-17-year contracts with major fertilizer distributors in place covering about 91% of its planned production capacity.
Importantly, the military action in the Middle East has upended fertilizer markets, as the Strait of Hormuz handles roughly a quarter of the world’s traded nitrogen fertilizer. Prices for urea and phosphate have already spiked sharply, and with Northern Hemisphere farmers heading into spring planting season, global supply chains could see increased stress, further underlining GRO’s fundamental story.
Technically, GRO got off to a rough start after its IPO in November of 2024, but over the past year or so, shares have been carving out a long-term base along lows. Over the past several months, shares have been making progress off lows; however, they have recently been flagging under March 2025 swing highs, forming a cup and handle pattern in the process. As always, we will not chase strength on Monday morning, but will look to develop a position as the stock forms its flag under resistance.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in GRO at the time this was published. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
