Farmers are busy pricing out and lining up crop inputs for spring seeding.
The rising cost of fertilizer and supply chain challenges has been an increasing concern for producers, especially over the last couple of years.
StoneX is a global financial services organization focusing on commercial hedging, global payments, securities, physical commodities, foreign trade and clearing and execution services.
Josh Linville, vice president of Fertilizer at StoneX says when it comes to fertilizer this year, he doesn't believe we'll see a supply shortage.
"I think the worst-case scenarios are behind us. I think there could be some in season if we wait till just in time. I think the product will be around, it just may not be at the right place at the exact right time. But the whole worry about oh there's not enough to go around, I'm no longer in that camp."
Russia still continues to reduce natural gas flows to Europe, while the demand for natural gas in Europe remains much higher than normal.
Linville says that their nitrogen production is lower, and if you lower global supplies, prices go up.
He notes that we've started seeing nitrogen and fertilizer prices as a whole come down.
"Which was not expected. Some of the things we had been fearful of earlier this year. We were fearful that Russia was not going to export any fertilizer. China was not going to export any fertilizer. European production was not going to come back online. Well, we started to find out Russia, in fact, is sending products around the world, maybe not to its normal places, but the product is finding its way to the world market. China has been loosening restrictions. The European natural gas price which normally is in the single digits, rose to $100, its now back down to $20."
Linville says that's raising the idea that more production may be coming back online, so we're in a better spot.
To hear Glenda-Lee's conversation with Josh Linville, vice president of Fertilizer at StoneX click on the link below.