Herbicide producer Nufarm has jumped today on news that Brazil had overturned its ban on glyphosate products despite the continuing review into products that contain the chemical. Glyphosate is common in many weed control products, including Roundup, and came under fire after a US court ruled in favour of a cancer suffer who took Roundup to court claiming that the chemical had contributed to the disease.
Before this court case, Nufarm had come under pressure from the Australian drought which forced it to downgrade guidance back in July and had fallen -34.7% from a June high of $9.60 to an August low of $6.27 when fears peaked on glyphosate bans and drought impacts were factored in.
Nufarm (ASX:NUF) Chart
Market Matters Take/Outlook
The bounce back for Nufarm has been impressive highlighting why buying agriculture stocks into weather related issues holds credit. The company however trades on a high multiple, and risks around regulation of their major product carries risks. We remain on the sidelines
