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Michigan Farm Bureau analysis from Illinois and Ohio State economists says anhydrous ammonia could fall to about $700/ton if current corn at $4.40 and natural gas at $2.35/MMBtu hold, while futures imply about $750/ton. Anhydrous has been near $800/ton recently, and the authors note a strong positive correlation between anhydrous, corn and gas prices.
Expected declines in anhydrous costs ease farmers' margin squeeze, and the link to corn and gas prices means shifts in those markets will drive nitrogen pricing.
michiganfarmnews.comNick Paulson, Gary Schnitkey, Univ. of Illinois, Carl Zulauf, Ohio State Univ.Jun 20, 2024Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
