EU farms cautious over fertilizer purchases – Yara
The nutrient giant said that, with agricultural commodity prices high, farmers had a “strong” incentive to boost fertilizer applications to boost yields and exploit “improved margins for most arable crops”.
“Pre-buying incentives for the new season are significantly stronger than a year ago, with higher grain prices and lower nitrogen fertilizer prices,” the Norwegian-based group said.
However, Europe’s farmers “remain cautious” despite profitability prospects, Yara said, noting the “negative macroeconomic environment”.
Yara chief executive Joergen Haslestad said: “We have seen a cautious behaviour in Europe, and the farmers are sitting a bit on the fence.
“We do believe that they now are now sitting and waiting as they did last year.”
The comments throw up a second question mark for a fertilizer sector which earlier this week witnessed a profit warning by PotashCorp, the top potash group by capacity, blamed on delays to China and India signing new contracts.