The Zacks Fertilizers industry is expected to benefit from strong demand for major crop nutrients like phosphate and potash due to favorable agricultural market conditions and farm economics. Companies like Nutrien Ltd. (NTR), ICL Group Ltd (ICL), and Intrepid Potash, Inc. (IPI) are poised to gain from increased fertilizer demand globally despite challenges like weak prices.

The Zacks Fertilizers industry consists of companies that produce, distribute, and market crop nutrients essential for global agriculture. Demand for these nutrients is driven by the need to increase grain production to meet rising food consumption. Factors like healthy farm income, increased planted acres, and the need to boost yields to feed a growing global population support fertilizer consumption.

Fertilizer companies are set to benefit from strong global demand for major crop nutrients in key markets like the United States, Brazil, and India. Despite weaker fertilizer prices in the recent past, factors like high levels of corn planted acres and low nitrogen channel inventories are expected to drive demand. The agriculture sector has remained relatively stable amid the pandemic, supporting global food demand.

While fertilizer prices surged to historic highs earlier, they have since stabilized but remain weaker year-over-year, impacting industry profitability. Factors like disruptions due to the war in Ukraine and escalating costs have led to softer demand. The Zacks Fertilizers industry is part of the broader Basic Materials sector and currently holds a Zacks Industry Rank #92, reflecting positive near-term prospects.

Intrepid Potash, Nutrien, and ICL Group are three key players in the fertilizer industry to watch. Intrepid Potash, with a Zacks Rank #2, is expected to benefit from a healthy demand environment and strong earnings growth projections for 2024. Nutrien, a leading crop inputs provider, is seeing robust demand in its major markets and benefiting from acquisitions and cost efficiencies. ICL Group is focused on expanding its specialties business and enhancing productivity through innovative solutions.

Read more at Nasdaq: 3 Top Fertilizer Stocks to Watch From a Promising Industry