CF Industries clocked expectations of another year of bumper corn sowings in 2011 as the fertilizer group trumpeted a "favourable" outlook for its products, despite some soft performances in the spring.

The autumn fertilizer season would be "strong" this year, due to an early harvest, which will extend the window open to farmers to bed in winter crops, and to "anticipation of another large corn planting in 2011", the group said.

US corn plantings rose this year by 1.4m acres to 87.9m acres.

Furthermore, deal inventories were "generally low", meaning demand, particularly from developing markets, would feed through directly into higher producer sales.

"We expect upward momentum in nitrogen to be sustained," Stephen Wilson, the CF chairman and chief executive, said.

Earnings tumble 

The comments followed an April-to-June period in which, while farmer application of ammonia fertilizers soared, the increase came at the expense of urea and urea ammonium nitrate, alternative nitrogen nutrients, "exacerbating pressure on these products".

Although group sales jumped by 62% to $911.1m, the improvement reflected the takeover of rival Terra Industries, which was completed in April.

Earnings tumbled 55% to $136.6m, undermined by weaker margins on fertilizers and by $113.7 spent on integrating Terra, which CF bought after a chase lasting more than a year, which ended in the trumping of an offer from Norway's Yara International.

On a per share basis, earnings came in at $1.54, below Wall Street forecasts.

CF added that the Terra integration had identified deal benefits, such as the removal of duplicated costs, "in excess of" the $105m-135m a year originally identified.

CF shares stood 0.4% higher at $86.12 in morning trade in New York.