The Rabobank Food & Agribusiness Research (FAR) and Advisory group released its bi-monthly North American Agribusiness Review. This report is an overview of sectors across North America.

The report covers multiple issues and commodities, but of most interest is its analysis of the fertilizer industry.

The report states:

"On a global basis, fertilizer supply still outweighs demand although nutrient prices have generally bounded from the low levels seen in 2014. Notwithstanding relatively full supply chains at present, normal spring demand is providing a floor on domestic fertilizer pricing.

"By way of background, the fourth quarter of each year is typically a period of significant fall application of fertilizer after harvest time, with application of all nutrients representing approximately one-third of total. Last year, adverse weather delayed the harvest and made field work in advance of the forward planting season difficult, thus pushing forward fertilizer demand to spring.

"Despite an excess of global fertilizer supply, North America has several region-specific price differences, which can result in different prices in various states. For instance, prices would inflate during Spring application at the retailers level, when Spring demand more aggressive than estimated and a retailer does not have the volumes readily available.

"2015 will be the year in which the first nitrogen fertilizer projects start producing fertilizers in the U.S. This will reduce the U.S.’ dependency on imports, and would improve domestic availability. First plant will be OCI’s new facility in Iowa. Many other projects are also in the works by existing players to leverage the structural advantages of U.S. natural gas production."