Resurgence in demand for fertilizers in North America during 2010 will carry forward into 2011, placing heavy pressure on the supply side to deliver plant nutrients when and where needed.
Following weak demand in 2009 as U.S. and Canadian farmers were disinclined to purchase because of high fertilizer prices, improving prices for commodity crops, along with the need to replenish exhausted soils, spurred sales of nitrogen, phosphate and potassium fertilizers in 2010.
Fertilizer producers and marketers across North America said corn, wheat, soybean and other crop growers returned to normal levels of fertilizer applications in the spring of 2010.
The heavy demand allowed fertilizer sellers to clear out inventories, creating a need to refill the system over the summer for the 2010 autumn application season.
The autumn application season was marked by robust sales again, particularly for ammonia and phosphate fertilizers.
With crop plantings expected to increase next year, and grain and oilseed prices providing incentives for farmers to invest in nutrients, the stage is set for growth in the fertilizer market in 2011.