By Susan Solan


Nutrien Ltd. says it "continues to believe long-term fundamentals support the need for our low-cost, incremental potash capability and there is significant value in having flexibility to increase production when the market needs it."

On prices:

Spot prices for corn, soybeans and wheat are up 25% to 50% compared to the 10-year average, supporting grower returns and providing an incentive to increase crop production in 2023, the company said.

Nutrien said, "Global nitrogen prices have declined since the beginning of 2023 due to lower European natural gas prices and buyer deferrals."

"Cost of goods sold increased in the fourth quarter and full year of 2022 due to higher input costs, in particular higher cost of inventory, natural gas and sulfur."

"Seed sales increased in the fourth quarter and the full year of 2022 due to higher pricing along with strong North America corn sales, Latin America soybean sales and Australia canola sales."

On planting and production:

Nutrien said, "Safrinha corn planting and crop input purchases have been delayed due to wet weather, but we expect strong demand as the planting season progresses."

"We expect another year of strong crop production and input demand assuming favorable weather conditions."

"We believe potash inventories have been drawn down in Brazil and the U.S. following a historic decline in the pace of potash shipments in the second half of 2022."

On nitrogen and other chemicals:

Nutrien sais it expects European natural gas prices to be volatile in 2023, with around 30% of the region's nitrogen capacity currently offline.

It added: "We anticipate nitrogen supply constraints will persist in 2023, including lower Russian ammonia exports, reduced European operating rates and continued Chinese urea export restrictions."

"We expect a tight U.S. supply and demand balance ahead of the 2023 spring season due to higher corn acreage and increased U.S. nitrogen exports over the past six months."

"We expect Chinese phosphate export restrictions to be in place until at least April 2023, anticipate improved demand in North America and Brazil, and the continuation of strong demand in India...Phosphate product margins are expected to be supported by lower raw material sulfur prices due to reduced operating rates and demand in China."


--Write to Susan Solan at susan.solan@wsj.com


(END) Dow Jones Newswires

02-15-23 1819ET