South Korea's central bank said on September 18 that the country's producer price index, or PPI, rose in August as agricultural prices climbed due to the impact of a heatwave. The PPI increased 0.2% in August from the previous month, after falling 0.4% in July, which was the first decline since August 2025. Compared with the same period a year earlier, the PPI rose 7.9% in August, accelerating from a 7.7% increase in July. The Bank of Korea said prices of industrial goods, including petroleum and chemical products, remained flat in August from the previous month, while electricity, gas and water prices rose 0.9%. Prices of agricultural, livestock and fishery products rose 3.8% in August, accelerating from a 1.5% increase in July from the previous month, driven by prolonged high temperatures throughout the month. The domestic supply price index, which reflects both producer and import prices, fell 1.3% in August from the previous month.
Vylor Joins S&P 500 and FTSE All-World After Corteva Spin-Off
Vylor has been added to several major equity indices, including the S&P 500 and FTSE All-World, following its spin-off from Corteva, while Corteva was removed from multiple indices at the same time Vylor began trading under its new ticker. Vylor completed amendments to its certificate of incorporation and bylaws that align its governance with its status as a standalone company. The seed and genetics company has a market value of about $48.6b, and its inclusion in the S&P 500, Russell and FTSE All-World means passive funds are effectively locked in as holders. The company also exchanged EIDP notes into $1.44b of Vylor senior unsecured bonds, tying its balance sheet and decision making directly to how the seed and genetics business performs rather than Corteva group choices. Investors can track how interest expense on the 2.300%, 5.125% and 4.800% bonds flows through earnings, along with the planned ESOP related share issuance from the shelf registration.
Climate Adaptation & Water › Resilient Crop Inputs (bred seed, nutrients, protection) Capital
VYLR · Capital · Positive Vylor was added to the S&P 500, Russell and FTSE All-World after its spin-off from Corteva, locking in passive funds as holders.
CTVA · Capital · Negative Corteva was removed from multiple indices at the same time Vylor began trading, following the spin-off.
EIDP Inc · Capital · Neutral EIDP notes were exchanged into $1.44b of Vylor senior unsecured bonds, a balance-sheet event for the former Corteva entity.
A super El Niño event officially forms, with Jinjian Rice and other agricultural stocks hitting the daily limit up
The National Climate Center issued a bulletin on the morning of October 9 stating that a super El Niño event officially formed this September. Affected by this, the A-share agricultural sector continued to rally that afternoon. As of press time, Dunhuang Seed, Jinjian Rice, and Wanxiang Doneed hit the daily limit up, Shennong Seed rose more than 10 percent, and Qiule Seed rose more than 15 percent intraday. The National Climate Center said that since May this year, the central and eastern equatorial Pacific has entered an El Niño state, and from May to September the sea surface temperature index in the key region showed a rapid warming and sustained trend. Earlier warnings about a super El Niño event have repeatedly triggered collective gains in A-share agricultural stocks, as the market expects the El Niño phenomenon may disrupt global food production and push up agricultural product prices. A research report released by CICC on September 18 said that since 1960, strong and super El Niño events have most likely led to reduced global corn and palm oil production.
FMC Files Brazil Regulatory Dossier for Rimisoxafen Herbicide
FMC Corporation has submitted its regulatory dossier for rimisoxafen, the first dual mode of action herbicide, to Brazilian authorities, targeting resistant broadleaf weeds in major soybean and corn markets. The Brazil submission is the second global filing for rimisoxafen, following an earlier filing with the U.S. Environmental Protection Agency, and advances the company's pipeline of new proprietary herbicides. The move connects to FMC's recent exclusive supply and license agreement with Corteva around rimisoxafen, which includes a US$200 million pre-purchase and provides a commercialization pathway in corn and soybeans. FMC's narrative projects $3.9 billion in revenue and $313.5 million in earnings by 2029, requiring 6.6% yearly revenue growth and about a $3.0 billion earnings increase from -$2.7 billion today. The lowest analyst estimate assumes revenue of about US$3.8 billion and earnings of roughly US$335.0 million by 2029, citing the long, uncertain approval path for products like rimisoxafen as a key reason profits could lag.
FMC · Regulation · Positive FMC filed its Brazilian regulatory dossier for rimisoxafen, advancing the herbicide toward approval in major soybean and corn markets.
CTVA · Demand · Neutral Mentioned only as FMC's exclusive supply/license partner for rimisoxafen, with no new development of its own.
Zhongqi Shares: Super El Niño Will Significantly Affect Herbicide Demand
Zhongqi Shares stated on an investor interaction platform on October 8 that the overseas herbicide market is generally on a steady growth track, but regional divergence is significant. The company said growth is mainly concentrated in Southeast Asia, India, and Latin America, while demand in markets such as North America and the European Union is relatively stable. Zhongqi Shares also pointed out that the super El Niño from the end of this year to early next year will have a relatively significant impact on herbicide demand.
J.P. Morgan Upgrades Corteva to Overweight After Vylor Spinoff, Sets $19 Target
J.P. Morgan upgraded Corteva to Overweight from Neutral on Tuesday, arguing that the agricultural-chemicals company left behind after the spinoff of its seed business is undervalued and has a stronger financial profile than its share price suggests. Lead analyst Jeffrey J. Zekauskas set a December 2027 price target of $19, compared with Corteva's Oct. 5 closing price of $12.39, implying upside of about 53%; the sharp reduction from J.P. Morgan's previous $83 target reflects the separation of Corteva's seed business into Vylor rather than a comparable collapse in the bank's assessment of the underlying company. The new Corteva consists of the former company's crop-chemicals operations, which J.P. Morgan estimates has a gross margin of about 38%, ebitda margins of 16.5% to 17% and negligible net debt, with the shares trading at roughly 5.7 times estimated 2027 ebitda, about one turn below rival FMC despite FMC carrying substantially more leverage. Zekauskas estimates a high-quality crop-chemicals business could ordinarily warrant about 10 times 2027 ebitda, equivalent to roughly $21 a share before environmental liabilities, but J.P. Morgan uses a more conservative 9-times multiple to reach its $19 target, accounting for uncertainty over PFAS and PFOA liabilities inherited from the former DuPont structure; it models a conservative scenario in which combined liabilities for DuPont, Chemours and Corteva reach $8 billion, twice the existing $4 billion framework, putting Corteva's responsibility at about $1.3 billion, or roughly $2 a share. J.P. Morgan forecasts Corteva revenue rising from $7.87 billion in 2026 to $8.10 billion in 2027, adjusted ebitda increasing from $1.28 billion to $1.37 billion, adjusted EPS climbing 31.6% to 85 cents in 2027 and free cash flow to the firm jumping to $542 million from an estimated $63 million this year, with potential catalysts including $300 million in run-rate savings targeted from 2024 through 2027 and $500 million by 2029, plus a recovery in grain prices.
CTVA · Capital · Positive J.P. Morgan upgraded Corteva to Overweight and set a $19 price target, calling the post-Vylor crop-chemicals business undervalued at ~5.7x 2027 EBITDA.
FMC · Competition · Neutral FMC is named only as a valuation comparison, with Corteva trading about one turn below FMC despite FMC carrying substantially more leverage.
Nutrien to Indefinitely Shut Trinidad Nitrogen Operations
Nutrien Ltd. announced it will indefinitely shut down its Trinidad Nitrogen operations at the Point Lisas Facility following a comprehensive review of strategic alternatives and discussions with relevant stakeholders. The decision responds to ongoing natural gas constraints and supply uncertainty and is aimed at reducing pressure to enhance free cash flow and return on invested capital. Nutrien had previously implemented a controlled shutdown of the facility on Oct. 23, 2025, due to port access restrictions and a lack of reliable and economic natural gas supply, and it determined that permanently halting operations was the optimal path. The shutdown should not affect Nutrien's 2026 nitrogen sales volume guidance, which was maintained at 9.2-9.7 million tons, because the company had already assumed no production from Trinidad's operations. On its second-quarter call, the company raised its 2026 Potash sales volume guidance to 14.2-14.8 million tons from 14.1-14.8 million tons, while Phosphate sales volume guidance remains 2.4-2.6 million tons and global potash shipments are projected at 74-77 million tons for 2026.
NTR · Supply · Positive Nutrien indefinitely shuts its Trinidad nitrogen operations due to natural gas constraints, cutting high-cost capacity and easing pressure to improve free cash flow and ROIC.
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