North American fertilizer market ushered in a short golden period

Recently, the North American fertilizer market has been affected by the imbalance of supply and demand, and prices have soared

Unbalanced supply and demand

Similar to other bulk products with rising prices, the increase in fertilizer prices in North America is due to short supply

From the perspective of demand, the strong demand in the world's major crop growing areas is the driving force behind the high prices of chemical fertilizers

From the perspective of supply, fertilizer prices have also been boosted by rising corporate costs

For fertilizer companies, in the period before the epidemic, the level of investment by companies in new production capacity was low.

Increase in profitability of fertilizer companies

In the context of the current surge in fertilizer prices, fertilizer companies can be said to have ushered in a golden period of profitability

Recently, Zachs, an international investment research organization, said that under the high North American fertilizer prices, American Maison, Nutrien, Intrepid Potash and Chile Mining and Chemicals (SQM) will become the leaders and new favorites of investors in the North American fertilizer market

　　Zacks predicts that Legg Mason’s earnings this year will increase by 450.

　　Fertilizer prices will not fall temporarily

　　Senior agricultural economist John Baffes believes that it will take some time for fertilizer producers to increase production, so the current imbalance between supply and demand is difficult to solve in the short term, which provides short-term support for fertilizer prices

　　However, high fertilizer prices will cause many problems, especially food prices

　　Rabobank’s latest commodity report stated that global central bank printing of money, climate issues and supply chain issues have led to soaring global agricultural prices