Nutrien Expects Fertilizer Demand to Increase — Commodity Comment
By Stephen Nakrosis
Fertilizer company Nutrien said it sees fertilizer demand increasing, with demand in the fourth quarter expected to grow in both the U.S. and Brazil.
Nutrien also said "weather and geopolitical issues continue to impact global grain and oilseed production and trade flows, resulting in tight inventories."
On agriculture and retail:
The U.S. harvest has progressed at an above average pace, Nutrien said, adding "fall fertilizer application rates have been strong in regions where harvest has been completed." The company expects fertilizer demand to rise 5% to 10% in the fourth quarter, compared to the year-ago period.
In Brazil, soybean acreage is seen expanding 3% to 4% this year, Nutrien said, adding fertilizer demand has increased in the fourth quarter. "Growers in Brazil continue to purchase crop inputs on a just-in-time basis, in particular crop protection products," Nutrien said.
On demand:
Demand was strong for potash in North America, Brazil and China, amid relatively stable global prices, Nutrien said. The company raised its projected global shipment range to 65 million to 67 million tons on the back of strong demand in the second half of this year.
"Robust agricultural fundamentals and the need to replenish soil nutrient levels" are seen supporting increased potash consumption next year, the company said, adding "we forecast global potash shipments in the range of 67 to 71 million tons in 2024."
Urea markets are relatively balanced, while tight phosphate fertilizer supply has supported global benchmark prices and recent ammonia and sulfur input cost increases may pressure phosphate margins, Nutrien said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
November 01, 2023 18:57 ET (22:57 GMT)
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