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)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth