Saskatoon-based Nutrien sees a bright future in the coming year for its crop supply business.
The latest outlook says global grain stocks to use ratio, excluding China, are expected to decline to the lowest level in more than 25 years.
The drop is driven by reduced corn and wheat production expectations in the U.S. and Europe.
As a result of tight supply and demand balances, spot prices of corn, soybeans and wheat are up 25 to 50 percent compared to the 10 year average and Nutrien expects strong futures prices to provide an incentive for farmers to boost production in 2023.
The U.S. projects Ukraine grain exports will decline 44 percent year over year in 2023, in large part driven by reduced production levels.
In South America, drought in Argentina is affecting production but planting conditions in Brazil are favorable.
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