Mark Thompson: Sure. Hi, good morning Jacob. I’ll maybe make a few comments and then perhaps have Jeff talk about the inventory positioning and network at the retail level as well. From a producer standpoint, I think what you pointed out is absolutely correct we have seen caution in the channel. It’s a little bit different on potash and nitrogen. I think from a potash standpoint, the inventory destocking process we expected to see in North America, particularly and Brazil through the end of Q4, really did take place. From a North America standpoint, we saw inventories as we assess them at the customer level down in that range of 15% to 20%. And I think Jeff and the Nutrien Ag Solutions team to could corroborate that trend. Our winter fill program that was put out early in 2023 had a good response.
We filled about 70% of the program, which would be modestly below historical levels. And I think that reflects the overall caution that you’re talking about. Of course, Jeff will be able to talk about the expectation. We do see strong grower demand coming €“ but really, there is this cautious approach because of price volatility that’s delayed some of that purchasing and assuming that we do see strong fundamentals emerge. We will put a strain on the supply chain. I think this is an area in potash in particular, where Nutrien is exceptionally advantaged. Our terminal network and distribution assets as it relates to potash are really unparalleled in the North American market. So we are set up very well to deliver when that spring demand breaks.
I think the same would be true from a nitrogen standpoint. In nitrogen, the channel is probably about average purchases relative to historical levels. But again, we have seen some grower caution. Our network is positioned to meet that demand. We’ve got a good portion of the second quarter order book that we’ve intentionally have uncommitted at this point to sell into what we expect to be firm or fundamental. So notwithstanding the caution you’ve talked about, we think we are very well positioned. But I’ll pass it to Jeff to maybe comment on the retail level position.
Jeff Tarsi: Yes. And I would obviously agree with comments both by Ken and Mark. If I look at our inventory levels today in our Ag Solutions business, we’re sitting a bit below where we would historically be on inventories, and we have to go through it by product, particularly with potash. But I always go back and when I look at the fundamentals and what I think what’s going to be demand driven I’ll go back first to prepay in the fourth quarter. We had very strong prepay from our customer base in the fourth quarter. If I look at our seed book to date, our seed book is very strong as well. So what I’m absolutely convinced of is we’re going to plan a big crop globally around these commodities. We also have the ability to look €“ we do extensive solar testing.
And so we’ve got an ability to look in and see what the solar fertility levels look like. If I look at a product like potash, I see about 40% of those tests that say we’re below some standard of where we need to be in order to maximize yield. So to say all of that, Jacob, it probably gets back to where he started this thing is that we anticipate a lot of buying for the spring. And you’re right, we could have some supply chain constraints and product doesn’t start moving. And from my perspective within our retail organization, I feel strongly because we’ve invested very heavily in our supply chain. But growers just been a little bit slower in a lower cost environment to come in and commit particularly as it relates to nutritional.
Operator: Your next question comes from Joshua Spector with UBS. Please go ahead.
