Mumbai, Aug. 10 -- With ammonia prices retreating sharply since late June, analysts see limited upside for fertilizer stocks.

While an earnings upgrade may be too early to call, improving rainfall and lower ammonia prices offer some relief, even as elevated sulphur costs continue to weigh on margins.

"The benchmark Tampa contract (Yara-Mosaic) settled down a steep $110 per metric tonne month-on-month-with import hubs correcting in sympathy-followed by a further $30/mt cut for August, while Northwest Europe spot has printed ~$680/mt cost and freight, ~25% below the peak," pointed out Harmish Desai, senior vice president, Systematix Institutional Research.

The Tampa ammonia contract is a key global benchmark for the key raw material for ...