The name of the game is nitrogen, and markets are keeping a close watch on 2021’s expected fertilizer frenzy.
In North America, improving farm economics, increased canola planting, and steady corn acres will keep demand strong.
But let’s go global:
- India: Favorable weather in the region equals a projected buying spree that global markets like to see.
- Brazil: A lack of domestic urea and better farm incomes will make South America a hot spot for sales.
Nitrogen’s biggest input – energy from natural gas or coal – is seeing climbing prices that factor into the other side of that demand equation: supply. With a rising cost curve among producers in regions like Europe and Asia, there’s a chance global nitrogen output could fall.
And you know what they say about opportunity and overalls…
There’s a lot of hard work being done by startups to rethink nitrogen usage, stabilization, and retention.
One example: Sound Agriculture. Their nutrient efficiency product, SOURCE, is newly available to corn and soybean producers. Touted to save 25-50 lbs of nitrogen/acre for by unlocking previously unavailable forms of nitrogen, it’s the new kid on the block of reducing dependence on the fertilizer.