The Canadian company, which is the largestproducer in the world, raked in US$5 billion in profits in the first half of the year as crop input prices soared to multi-year highs.4:17Farmers voice concerns over possible fertilizer use reduction
“We believe structural changes to global energy, agriculture and fertilizer markets will provide a support environment for Nutrien well beyond 2022,” Seitz said.Record high temperatures in Europe this summer have reduced summer crop yields, Seitz said. While crop commodity prices have been affected over the past month by broader market volatility, they are still 25 to 35 per cent above the 10-year average, he said.
“Analysts believe volumes will continue to be challenged by labor and logistical constraints in addition to ongoing military strikes in the region,” he added. “Ukraine’s grain production and export levels are projected to be down dramatically compared to 2021, leaving little buffer for any supply issues in other regions this growing season.
“The impact of sanctions on Belarus supply has been more significant due to the loss of access to tidewater through Lithuania,” Seitz said.Nutrien’s potash sales volumes for the three months ended June 30 were 3.7 million tonnes, a second-quarter record high.