(Bloomberg) -- Nutrien Ltd. fell the most ever Thursday while CF Industries Holdings Inc. recovered from an early slide, after both posted disappointing quarterly earnings driven by farmers’ reluctance to purchase high-priced fertilizer. The difference: The outlook for nitrogen demand is better than for potash, another crop nutrient.  

Shares of Nutrien, the world’s largest potash producer, fell 14% to C$97.93 in Toronto. CF, the biggest nitrogen-fertilizer maker, fell as much as 7.5% in New York before reversing losses to end 2% higher. While potash is critical to crop yields it can be skipped, unlike more urgently-needed inputs like nitrogen, according to Bloomberg Intelligence. 

Fertilizer prices are falling from the highest levels seen in years as farmers postpone purchases to await lower prices, creating gluts that are upending the market for crop inputs. It’s a reversal from earlier this year when prices surged after Russia’s invasion of Ukraine threw the world’s crop-nutrient sector into disarray.

The companies see the price decline as a short-term issue, and top executives remain bullish on the demand outlook. CF said Wednesday that supplies are still tight, and the company doesn’t see much slack in the market despite the localized gluts.

Conditions that have supported nitrogen prices for the last year -- chief among them lower operating rates due to high energy prices in Europe and Asia -- show no signs of abating, CF Chief Executive Officer Tony Will said in an earnings release. Executives on a quarterly call said Thursday that while a lot of farmers are waiting to see if nitrogen prices drop further, they will need to buy it in 2023.

“We expect the global nitrogen supply-demand balance to remain tight with attractive margin opportunities for low-cost producers further into the future,” Will said.

Weekly wholesale US cornbelt potash prices and Brazilian spot prices fell to the lowest in more than a year for the week ending Oct. 28, according to Bloomberg’s Green Markets. 

Nutrien lowered its global potash shipment forecast due to the impact of “higher-than-expected” inventory and “cautious buying in North America and Brazil,” during the second half of 2022, the company said. 

Still, Nutrien expects “robust” agricultural fundamentals will support increased potash use in 2023 and “pent-up demand will emerge” as inventories are drawn down and prices stabilize, according to the company’s statement. The company’s plan to increase potash production capacity to 18 million tons by 2025 has not changed, Nutrien CEO Ken Seitz said Thursday on an earnings call.

“We have to be prudent about expanding capacity, pacing it with the market,” Seitz said. “We continue to believe the supply-side challenges are real and there’s going to be a home for our volumes in the market.”

Nitrogen prices have fallen along with European gas and suppliers are now reportedly dealing with customers who are waiting to buy in hopes of even lower prices, Raymond James Financial Inc. analyst Steve Hansen wrote in a note.

“In potash, specifically, international buyers have become strikingly emboldened by six months of persistent price declines, electing to leverage time and defer purchases as long as possible,” Hansen wrote.

(Updates shares in second paragraph)

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