“We’re going to get demand improvement,” Jonas Oxgaard, an analyst at Sanford C. Bernstein in New York, said in a phone interview. “If the only thing we’re seeing is normalization, so we go back to the trend line, that’s still a pretty good outcome.”
Fertilizer prices may ease in 2020 as new global sources of supply emerge. EuroChem Group AG and OCP Group are expected to boost potash output, and 4 million metric tons of urea capacity are forecast to come online, Maxwell of Green Markets said.
Prices dropped in 2019 in tandem with lower costs for natural gas and Chinese coal, benefiting producers including CF Industries Holdings Inc. and Sinochem.
There might have been three poor planting seasons in the US Midwest but that has not done much to support a rally in grain and bean prices. There is plenty of supply from other sources and that has helped to keep prices down. The additional impact of swine flu, cutting out demand for grains, has been an additional factor in containing price momentum.Click HERE to subscribe to Fuller Treacy Money Back to top