LONDON (Commodity Online): The outlook for fertilizers in first quarter(Q1) 2012 is clouded due to uncertainities in the Europe.
The price outlook for fertilizers is fairly neutral and there exist possibilities of downward in the early stages of the Q1, according to Rabobank report.
In Q4, the fertilizers has been badly hit mainly due to the Euro debt crisis.
Among fertilizer, Urea was the worst hit in Q4 2011. The price of the commodity fell 25%., while the phosphate prices were softer than the bench mark price. The price of potash was steady in Q4 2011.
If the euro debt crisis gets more worser, then the agricuture sector wold be negatively affected, which inturn would affect the fertilizer price and demand.
A quick resolution to the Euro debt crisis could boost cash flow into the agriculture sector effectively restoring farmers confidence, which encourage the rebuild of the supply chain.
Overall, if agriculture do not pick up, the fertilizer prices would furthur decline in Q1 2012.
