Fertiliser, chemical prices seen lower in 2009

World prices for fertiliser and agricultural chemicals are expected to be ''significantly'' lower in 2009 than the previous two years due to fall in demand and the world economic woes, the world's largest lender to farmers said.

In a statement, Rabobank Groep NV says prices for major farm inputs such as crop nutrients fell between 60 percent and 75 percent from records reached in mid-2008.

Global fertiliser makers Yara International ASA, the world's largest, and Mosaic Co. and Agrium Inc. are reducing production amid rising inventories and weak demand. Farmers are delaying purchases on expectations fertiliser prices will fall and after commodity prices eased from records.

The bank further said outlook for world fertiliser prices is ''significantly influenced by the current global economic downturn and the fall in the broader commodity prices for agriculture, energy and international freight.'' It added that these factors have resulted in ''reduced fertiliser demand in the short term and consequently lowering prices''.

To be sure, fertiliser prices will remain above long-term average levels, the bank said.