Farm Progress

The price of fertilizers looks set to outstrip that of crops themselves, as farmer demand recovers worldwide at a time when China is hoarding its own production.

March 29, 2011

1 Min Read

From agrimoney.com:

The price of fertilizers looks set to outstrip that of crops themselves, as farmer demand recovers worldwide at a time when China is hoarding its own production.

UBS said that, among the major agricultural commodities, only soybeans remained on its "most favoured" list, forecasting prices of the oilseed would prove firm even into 2014 when they would average $12.00 a bushel in Chicago.

The oilseed's stocks, as compared with consumption, will "continually decline over the next four years, as China's consumption outstrips supply from the US, Brazil and Argentina", UBS said.

However, the bank said that its overall commodity preferences were "dominated by energy, fertilizers and precious metals" and named nutrient groups Potash Corporation and Taiwan Fertilizer among its top equity picks.

For more, see: Fertilizer prices to outpace crop futures – UBS

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