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The interior of a storage warehouse at Nutrien's Cory potash mine, near Saskatoon, on Aug. 12, 2019.Nayan Sthankiya/Reuters

Canadian fertilizer company Nutrien Ltd said on Monday it expects to increase potash production by about half a million tonnes in the second half of the year compared to earlier expectations, due to strong global demand.

As crop prices rise, farmers have greater incentive to use fertilizer and maximize yields, boosting potash demand and spurring a surge in global sales of potash fertilizer.

Nutrien expects higher output to boost core earnings from its potash business in the second half of 2021.

The Saskatoon, Saskatchewan-based company said in May it expects potash sales in the range of 12.5 million tonnes to 13 million tonnes for 2021. Last month, it also raised full-year forecast for adjusted net earnings per share to between $2.55 and $3.25 from $2.05 to $2.75 forecast earlier.

Domestic and offshore potash sales volumes are currently fully committed through September, based on original production profile for 2021, Nutrien said in a statement.

U.S.-listed shares of the company were up 0.5 per cent at $64.83 in premarket trade.

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