By Dhirendra Tripathi

Investing.com – Nutrien Ltd. (NYSE:) stock traded 0.3% higher in premarket Thursday on plans to raise potash output to capture demand currently unserved due to the Russia-Ukraine conflict.

In response to uncertainty in supply from Eastern Europe, the world’s largest fertilizer manufacturer plans to boost potash production by almost 1,000,000 tons this year to approximately 15 million tonnes.

Producing nitrogen-containing fertilisers requires potash, which is why Russia and Belarus are second and third in the world respectively. Only a handful of countries are responsible for the potash fertilizer industry. Due to sanctions against Russia and Belarus, supplies from eastern Europe have been halted. Nutrien Sees potential for additional market share.

Company stated that the majority of additional volume would be produced during the second half, as per company estimates.

Nutrien’s 2022 potash production is expected to increase by nearly 20% compared to 2020 and account for more than 70% of global production added over this period, according to the Canadian firm.

“We expect a small increase in our 2022 capital expenditures and will be hiring additional employees across our network of low-cost potash mines in Saskatchewan,” it said.

Nutrien stated that it would update its outlook for 2022 and guidance during the May earnings releases.

There are reports of Canadian Pacific The gains of Railway (NYSE) are capitulated by sending employees a lock out notice. 

After talks between the transporter and a union over wages failed to resolve, this was a step that could have a negative impact on the commodity’s supply.