U.S. farmers may get their Christmas wish this year after all. A new Rabobank report predicts fertilizer prices will decline next year while commodity prices are at historically high levels.
While fertilizer availability and prices have been nothing short of chaos since Russia’s invasion of Ukraine, economic analysts say calmness should prevail through the tension in 2023. Phosphate fertilizers are already trending lower with decreased demand due to the expense. Potash market demand also sputtered as prices shot higher.
Farmers should generally have strong working capital and positive margins leading into the new year. More reasonable fertilizer costs should allow the gains to continue in 2023.