Other analysts think prices will hold steady because fall demand will be higher as farmers decide to restore soil nutrient levels that were reduced by their resistance to high fertilizer prices the previous two years.
International fertilizer prices declined over the summer, partly because China increased urea exports.
“The drought in Western Canada and the excessive moisture levels in Eastern Canada will impact fertilizer demand in 2024,” Anderson wrote.
“Price outlooks suggest a revision to more historical levels,” wrote Lance Ruppert, executive director of agronomy marketing & technology, in an article for GrowMark.
“After two years of the market cheating (application) rates, we expect demand to rebound,” he wrote.
Jay Boomsma, vice-president of the chemical and fertilizer division at Agri Partners, said the combination of robust grain prices and much lower fertilizer prices bodes well for farmers.
“The grain market price is still high enough to make it very profitable for the farmer,” he said.
“It’s one of the best fertilizer-to-corn price ratios we have had.”
