Nutrien expects more fertilizer use by farmers despite low crop prices
"We expect to be in a strong market next year," Nutrien CEO Ken Seitz said on a call with analysts.
Nutrien topped Wall Street estimates for second-quarter profit on Wednesday, benefiting from improved demand in North America amid a robust corn planting season.
The strong results were a rare bright spot for agriculture-focused companies after large agribusinesses including Archer-Daniels-Midland and Bunge Global reported their weakest quarterly earnings in years amid trade uncertainty from U.S. President Donald Trump's tariffs, while farm equipment makers warned of sales headwinds due to slumping farm incomes.
The company boosted its estimate of full-year potash sales following record sales in the first half of 2025, to a range of 13.9 million to 14.5 million metric tons, as farmers reacted to improving weather in parts of North America which had been grappling with drought conditions in previous years.
"We see growers investing to protect their yields," said Jeff Tarsi, Nutrien's head of global retail.
Crop prices for wheat, corn and soybeans are near multi-year lows in North America, a factor that can sometimes restrain farmers from buying fertilizer and other inputs, analysts say.
But excellent crops in many parts of the continent are encouraging farmers to use higher rates of fertilizer as this year's expected high-yield crops remove more fertilizer from the soil. To produce maximum yields in 2026, U.S. farmers will need to replenish soil fertilizer levels more than in some recent dry years, Tarsi said.
On Monday, the U.S. Department of Agriculture reported American corn and soybean crops were in the best condition for years at this point of the growing season. Crop prices have fallen as markets anticipate big supplies from North America, Brazil and other significant areas.
Seitz said he sees the global potash market as "in balance" with "healthy" prices, citing strong demand and supplies unlikely to swell quickly due to challenges producers face in developing new projects.
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WINNIPEG, Manitoba, Aug 7 (Reuters) - Nutrien ( opens new tab, the world's top potash producer, expects increased fertilizer use by North American farmers this fall and a good global potash market in 2026 despite some crop prices at multi-year lows, company executives told analysts on Thursday. "We expect to be in a strong market next year," Nutrien CEO Ken Seitz said on a call with analysts. Nutrien topped Wall Street estimates for second-quarter profit on Wednesday, benefiting from improved demand in North America amid a robust corn planting season. The strong results were a rare bright spot for agriculture-focused companies after large agribusinesses including Archer-Daniels-Midland and Bunge Global reported their weakest quarterly earnings in years amid trade uncertainty from U.S. President Donald Trump's tariffs, while farm equipment makers warned of sales headwinds due to slumping farm incomes. The company boosted its estimate of full-year potash sales following record sales in the first half of 2025, to a range of 13.9 million to 14.5 million metric tons, as farmers reacted to improving weather in parts of North America which had been grappling with drought conditions in previous years. "We see growers investing to protect their yields," said Jeff Tarsi, Nutrien's head of global retail. Crop prices for wheat, corn and soybeans are near multi-year lows in North America, a factor that can sometimes restrain farmers from buying fertilizer and other inputs, analysts say. But excellent crops in many parts of the continent are encouraging farmers to use higher rates of fertilizer as this year's expected high-yield crops remove more fertilizer from the soil. To produce maximum yields in 2026, U.S. farmers will need to replenish soil fertilizer levels more than in some recent dry years, Tarsi said. On Monday, the U.S. Department of Agriculture reported American corn and soybean crops were in the best condition for years at this point of the growing season. Crop prices have fallen as markets anticipate big supplies from North America, Brazil and other significant areas. Seitz said he sees the global potash market as "in balance" with "healthy" prices, citing strong demand and supplies unlikely to swell quickly due to challenges producers face in developing new projects.
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