Nutrien CEO Mayo Schmidt sees farmers spending large on fertilizer

Fertilizer prices have skyrocketed as excessive pure fuel costs compelled some European manufacturing crops to halt or curtail manufacturing

Fertilizer demand is so robust that farmers are lining up for the crop vitamins, whilst costs soar, based on Nutrien Ltd., one of many world’s largest producers.

Growers gained’t be deterred by the corporate’s dear merchandise as a result of corn can also be costly, mentioned Chief Govt Officer Mayo Schmidt.

You are reading: Nutrien CEO Mayo Schmidt sees farmers spending large on fertilizer

“We’ve had excellent pricing and we’re persevering with to see excellent energy,” Schmidt mentioned Tuesday in a cellphone interview. “Our best problem is getting the tanks crammed as a result of the lineups are important.”

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Fertilizer prices have skyrocketed as excessive pure fuel costs, a key enter, compelled some European manufacturing crops to halt or curtail manufacturing. That’s threatening to lift the price of producing meals at a time when power and commodity inflation are already a priority.

The corporate is making an attempt to spice up potash output to maintain costs from getting too expensive for growers.

Mosaic Co., the world’s largest phosphate producer, can also be seeing an enormous leap in demand, Chief Govt Officer Joc O’Rourke mentioned on a 3rd quarter earnings name Tuesday.

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“Persistently low inventories and capability constraints are underpinning the tight supply-demand steadiness,” he mentioned.

Gross sales for each phosphate and potash dropped decrease than anticipated within the third quarter from 2020. That’s even after adjusting for points associated to closed and broken services, Scotiabank analyst Ben Isaacson mentioned in a observe.

Shares throughout the fertilizer trade fell Tuesday after main corporations reported earnings. Nutrien shares fell as a lot as six per cent to US$83.10 per share. Mosaic shares fell as a lot as 11.7 per cent to 36.60 per share, whereas CF Industries Holdings Inc., one other main nutrient producer, noticed shares fall as a lot as 3.4 per cent to US$55.65 per share.

U.S. spot costs for potash and urea, a type of nitrogen fertilizer, have greater than doubled this yr, based on Bloomberg’s Inexperienced Markets. The rally is stoking fears farmers might pull again on purchases or shift extra acres into crops that require much less vitamins.

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