Strong Farm Economics: Farm economics have strengthened in the United States on the back of government support and a spike in crop commodity prices. Expectations of higher planted corn and soybean acres globally this year on the back of higher crop prices also suggest a pickup in fertilizer demand. Higher agricultural commodity prices augur well for crop nutrient demand over the near term. Notably, prices of corn and soybean have rallied to multi-year highs. Moreover, strong global demand coupled with tightened supply have provided a boost to crop commodity prices. Lower global supply availability and a spike in energy prices are also likely to boost nitrogen prices.Īgricultural Fundamentals Remain Healthy: While the coronavirus pandemic stung a vast spectrum of industries, agriculture was left relatively unscathed given the sustained rise in food demand globally. Moreover, demand for urea imports into Brazil and India remains favorable. Healthy corn acres in the United States are expected to spur up nitrogen demand in North America. Global nitrogen requirement is being driven by demand in North America, India and Brazil. Demand for nitrogen fertilizer also remains healthy in major markets. Potash prices have also strengthened on the back of robust global demand, aided by strong grower economics, higher crop prices and low global inventory levels. Tight availability along with firm demand is driving up phosphate prices globally. Meanwhile, phosphate markets are likely to remain robust in the near term on solid demand and pricing dynamics. Strong farmer economics are also expected to support demand in major markets such as Brazil and India. Notably, demand for fertilizers in the United States is likely to be fueled by solid farm profits and higher planted acreage. Solid Crop Nutrient Demand and Pricing Dynamics: The companies in the fertilizers space are well placed to benefit from strong global demand and prices for major crop nutrients. What’s Shaping the Future of the Fertilizers Industry They also offer other nitrogen products to help farmers improve crop yield.
Companies in this space offer nutrients such as phosphates, potash, nitrogen fertilizers, including urea, ammonia and urea ammonium nitrate. The Zacks Fertilizers industry comprises producers, distributors and marketers of crop nutrients for the global agriculture industry. Factors like healthy farm income and expectations of increased planted acres are expected to drive demand globally in the near term. ( CF) are poised to gain from higher demand for fertilizers in the major markets. ( NTR), The Mosaic Company ( MOS), The Scotts Miracle-Gro Company ( SMG) and CF Industries Holdings, Inc. The underlying strength of the agricultural market, higher crop commodity prices and healthy farm economics are driving demand for fertilizers globally. The Zacks Fertilizers industry is benefiting from strong demand and pricing for major crop nutrients including phosphate and potash.
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