WINNIPEG— Canadian fertilizer prices are expected to increase as spring nears, according to industry professionals.
“The further you buy out from spring, the prices tend to be a little bit lower. In making your commitments early, prices tend to edge up as you get closer to spring,” said Don Kitson of International Raw Materials Inc. in Fort Saskatchewan, Alta.
Kitson said no one really knows what the price is going to be, but prices will become stronger as winter recedes and the peak demand season approaches. He advised farmers to find a retailer they can rely on and who can tell them when it’s the right time to buy.
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Over the last year, fertilizer prices have jumped by 20 to 25 percent, said Clare Kinlin, sales manager with MacEwen Agricentre Inc. in Maxville, Ont.
Kinlin said changes in China’s exports are affecting the world supply and demand.
“They used to export so much nitrogen on the world market and now they are an importer of nitrogen.”
The soft Canadian dollar and consolidation within the industry, which has reduced farmer buying options, are also affecting prices, he said.
Kinlin said some fertilizer, especially solids, have gone up by as much as $100 per tonne, while liquids have seen price increases of up to $50 per tonne.
According to Kitson, China cut its urea production to reduce the environmental impact.
“That really affected the world supply balance,” he said. “A lot of it is tied to coal and (the Chinese) trying to improve their environment.”
Kitson noted China produces enough fertilizer to cover most of its own needs and for export, while importing from other countries.
“They are a major importer of potash fertilizers, so that’s always a big interest to Canadian companies. Canada is one of the largest exporters of potash in the world,” he said.
Also, he said regional issues can affect future prices, such as events on the U.S. Gulf of Mexico coastline that can delay shipments, he said.
