Rabobank projects global fertilizer trends

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

A new report issued from Rabobank indicates that the global fertilizer industry will have an oversupply of product throughout the first quarter of 2013. This is expected to put pressure on most fertilizer prices with the exception of urea.

Reduced demand from end users and inventory destocking during the fourth quarter of 2012 has led to the current situation, according to the Rabobank report. The result is a lull in global trading that will carry through the first quarter of 2013. The bank said the lull in trading at the end of 2012 was not unexpected and is considered normal given the time between harvest and planting.

“The bank predicts that global fertilizer prices are likely to remain relatively range-bound, and says that market fundamentals suggest global fertilizer markets will remain relatively balanced through Q1 2013,” according to Fort Mill Times. “However, a general oversupply, especially across the phosphate and potash complex, will linger through Q1 2013, providing some potential downside price risk. As a result, Rabobank has a slightly bearish view for the fertilizer complex through Q1 2013, with urea being the exception.”

Fertilizer buyers have been cautious through the end of 2012. China did not sign its contract with Canpotex until Dec. 31. India remains without a contract and claims to have enough supply through the second quarter 2013.

“Looking ahead, as agricultural markets are faced with the challenge of rebuilding global stocks next season, and given the precariously balanced fundamentals, global agri commodity prices are expected to remain at elevated levels in 2013,” said Rabobank analyst Dirk Jan Kennes.

For the short term, global buyers are expected to continue deferring purchases as they await lower prices.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

Pacesetter Grain Hopper

The Pacesetter Gain Hopper features original and innovative ideas like the patented RollerTrap™, the industry’s easiest to open and maintain trap ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form