European farmers are cutting fertilizer purchases as high prices suppress
demand. ICIS survey shows nitrogen procurement is up to 20% below typical
seasonal levels and phosphate demand is down about 30% or more. Weak demand
comes as this year’s harvests have already been hit—French maize yields are at
their lowest in over 30 years—and a conflict involving Iran has pushed up input
costs for fertilizer and diesel. Soil moisture deficits threaten some winter
crops, and lower fertilizer application could further reduce next season’s
yields. Markets will watch nutrient purchases as the buying window closes;
RABOBANK senior analyst Doriana Milenkova said there is still time to fill the
gap but risk rises as the spring application window forces large volumes through
the supply chain in a short period.
