Nutrien Expects Increase in U.S. Crop Areas — Commodity Comment

By Matt Walker

Nutrien said Wednesday it expects to see an increase in U.S. crop planted areas.

On U.S. major crop area:

Corn, soybean and wheat prices have softened recently due to seasonal pressure resulting from the expectation of higher Brazilian and U.S. crop production. However, new-crop futures are still approximately 15% above the 10-year average and grower margins remain healthy, providing incentive to invest in their crop and boost production. The company expects an 8 million acre increase in U.S. major crop planted area in 2023, including an additional 3 million acres of corn. Planting activity is progressing well in North America and fertilizer demand and logistical challenges have tightened North American fertilizer supply.

On challenges to global ag markets:

Geopolitical and weather-related challenges continue to affect global agriculture commodity markets, including significant production and export reductions from Ukraine and severe drought conditions in Argentina. The global grain stocks-to-use ratio is projected to end the current growing season at the lowest level in over 25 years.

On potash demand:

Potash demand has strengthened in North America as the spring application season has progressed, while engagement in offshore markets has been more variable. The company anticipates increased global potash demand in the second half of 2023 as a result of lower expected inventories and improved grower affordability compared to 2022.

On nitrogen supply:

North American nitrogen supply has tightened during the spring season due to strong demand and lower net imports. Global nitrogen trade has been affected by weaker industrial demand in Asia and Europe, and lower Indian urea imports. The company expects ammonia markets will strengthen as demand increases and supply remains challenged with approximately 40% of European capacity currently curtailed and Russian ammonia exports are constrained.

Write to Matt Walker at matt.walker@dowjones.com

(END) Dow Jones Newswires

May 10, 2023 19:34 ET (23:34 GMT)

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