As of the close of U.S. stocks on November 14, the share price of Canada’s Nutrien Ltd., the world’s largest potash fertilizer manufacturer, rose 3.68%. Israel Chemical Group, the world’s sixth largest potash fertilizer producer, rose 8.51%, and American potash company Intrepid Corporation rose more than 9.13%.
From the international market, due to multiple factors such as extreme weather and geopolitical turmoil, global production and trade flows of grains and oilseeds remain highly tense. Recently, with the expansion of soybean planting areas in Brazil, the demand for chemical fertilizers will also increase in the fourth quarter.
Southeast Asia, represented by Indonesia and Malaysia, has entered the bidding season for palm plantations, which will promote the demand for potassium fertilizer in the international market.
Recently, the potash giant company disclosed its third quarter report, maintaining its expectations for the future agricultural demand and the growth of the potash fertilizer market. Nutrien said weather and geopolitical issues continued to impact global grain and oilseed production and trade flows, leading to tight stocks.
Global stocks-to-use ratios for cereals and oilseeds are expected to remain under pressure for the foreseeable future.
Current positive agricultural developments and favorable crop prices provide incentives for growers to maximize yields. After two years of underapplication of chemical fertilizers, growers are looking to replenish soil nutrients.
In most major growing regions around the world, potash and phosphate stocks have been depleted and will need to be replenished in 2024.
