Middle East Conflict Continues to Disrupt Fertilizer Demand and Prices

Nutrien's CEO, Ken Seitz, expressed concerns about the ongoing Middle East conflict disrupting fertilizer demand and prices. The company reported a decline in net sales for nitrogen products due to low volumes, while production costs for phosphate increased significantly.

The war has resulted in substantial damage to fertilizer production facilities and natural gas facilities that export LNG for nitrogen production. Even if the Strait of Hormuz opened immediately, the effects on the supply chain would take time to resolve, according to Seitz.

Nutrien's legacy fertilizer product, potash, is mined from vast reserves in Saskatchewan's Prairie Evaporite Formation and is not as essential to crop development as nitrogen. However, potash prices have climbed, with a 5% increase in the first quarter and nearly 17% year-over-year amid sustained demand.

Nutrien shares fell after the company reported adjusted earnings of US$2.61 a share for the second quarter, missing analysts' estimates of US$2.71. The World Bank's fertilizer price index rose over 12% across the first quarter of 2026, the highest level since October 2022.