By Stephen Nakrosis

Crop inputs and services company Nutrien said it is seeing strong crop nutrient demand in North America for the fall application season after lower field activity in the third quarter.

On agriculture and retail markets:

"Favorable growing conditions in the U.S. have supported expectations for record U.S. corn and soybean yields and significant soil nutrient removal in 2024," the company said.

Nutrien said although prospective crop margins have declined compared to the historic highs in recent years, "we believe most growers in the U.S. Midwest remain in a healthy financial position."

With grain stocks around the globe below historical average levels, export demand for North American crops and firm prices for key agriculture commodities such as rice, sugar and palm oil are seeing support.

"Fertilizer demand in North America for the fall application season has been supported by a relatively early harvest and the need to replenish soil nutrients, following a period of lower field activity in the third quarter," the company said.

Fertilizer demand in Brazil is projected to be about 46 million tons this year, in line with historical record levels, Nutrien said. Soybean planting in the country was delayed by dryness, but "the pace of planting picked up in the second half of October and soybean crop area is expected to increase by 1% to 3%," according to Nutrien.

The company also said "Australian growing conditions for winter crops have been favorable with timely rains received in key areas, supporting crop production prospects and expected grower returns."

On crop nutrient markets:

Nutrien raised its global potash shipment forecast for this year to 70 million to 72 million tons, primarily because of stronger expected demand in Brazil and Southeast Asia. The company also said it is forecasting global potash shipments between 71 million and 74 million tons in 2025, "supported by the need to replenish soil nutrient levels and the relative affordability of potash. We anticipate limited new capacity in 2025 and the potential for incremental supply tightness with demand growth."

Global ammonia prices have been supported by supply outages, project delays and higher European natural-gas values, Nutrien said.

"Chinese urea export restrictions, production challenges from major exporters and strong demand from India and Brazil have tightened the global urea market," the company said. It added "U.S. nitrogen inventory was estimated to be well below average levels at the end of the third quarter, which we expect will support demand in the fourth quarter of 2024 and early 2025."

Nutrien also noted global phosphate market tightness is supported by Chinese export restrictions and production outages in the U.S.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

November 06, 2024 18:47 ET (23:47 GMT)

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