Nutrient Companies Comment on Planting Shifts
Cropping shifts always play a role in fertilizer projections, and two nutrient companies weighed in on the topic.
At Agrium, Jason Newton, Head of Market Research, points out that in 2017, a reduction in corn area in favor of soybeans led to an overall decline in fertilizer demand, but that decline was somewhat offset by increased cotton acreage. He notes that there are a number of variables that will impact cropping decisions going forward, but “we expect overall U.S. fertilizer demand to be relatively stable.”
At The Mosaic Co., Andy Jung, Director of Market and Strategic Analysis, sees a very limited impact on demand for phosphate and potassium nutrients because of acres switching from corn to soybeans — and his firm has not seen “a deleterious impact on demand from recent crop price levels either.
“And from an affordability standpoint, fertilizer prices are well below their historical average relative to grain and oilseed prices,” he points out. Mosaic publishes a weekly plant nutrient affordability index that highlights this fact.