Shares in Nufarm Ltd (ASX: NUF) are seesawing on Thursday after the company released an update just before early morning trade.
At the time of writing, the stock is up 2.72% to $1.89. The gain comes despite a continued broader downtrend, with Nufarm shares now down around 20% since the start of 2026.
Let's take a closer look at what was announced.
Strategic deal extended to 2050
According to the release, the company has strengthened its strategic collaboration with bp, expanding an existing agreement focused on biofuels.
The update centres on its Carinata business, which produces a non-food oilseed crop used as a feedstock for sustainable aviation fuel (SAF) and renewable diesel.
Under the revised terms, the marketing and offtake agreement has been extended to 2050, providing longer-term visibility over demand for Carinata oil.
The deal also supports the expansion of supply, backed by established grower networks and partnerships across multiple regions.
In addition, the agreement includes a funding model linked to milestone progress. This is intended to support ongoing investment in seed development, crop performance, and supply chain scaling.
Focus on scaling biofuels platform
Nufarm is positioning Carinata as a key pillar of its longer-term growth strategy, particularly as demand for lower-emissions fuels continues to build.
It noted that sectors such as aviation and heavy transport are increasingly turning to biofuels, given they are more difficult to electrify.
Since the original agreement in 2022, the program has expanded beyond Argentina into Brazil, Paraguay, and Uruguay. It has also been introduced in Australia through existing grower and distribution networks.
Management highlighted that the crop can be grown on existing farmland as part of crop rotation systems. This allows farmers to generate additional income while also contributing to emissions reduction goals.
The company also pointed to lifecycle emissions benefits, with Carinata-based fuel delivering lower greenhouse gas emissions compared to traditional fossil fuels.
Shares remain under pressure
Despite the long-term nature of the update, the share price has seen only a small move.
From a technical view, Nufarm shares remain under pressure. The stock is trading closer to the lower end of its recent range, with momentum indicators such as relative strength index (RSI) sitting in the mid-30s, pointing to weak buying interest.
The broader backdrop also remains challenging. Agricultural input companies have faced softer conditions in recent periods, alongside cost pressures and mixed demand across key markets.
Foolish takeaway
Today's announcement reinforces Nufarm's strategy to build out its biofuels platform through long-term partnerships and scalable supply chains.
The extended agreement with bp provides improved visibility over future demand and supports continued investment in the Carinata business.
However, the limited response suggests investors are still weighing near-term pressures against longer-term opportunities, particularly with the stock already down heavily in 2026.
The post A major long-term deal is lifting this ASX stock today appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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