Loading…
Fertilizer and fuel costs remain near decade-plus lows, but nutrient prices on a typical corn acre are up 7% from COVID-19 lows as growers ramp up fall applications. Urea, potash and phosphate prices are all higher, with India's new urea tender and Chinese export policy key to urea.
Rising urea, potash and phosphate costs raise input expenses for 2021 feed grain production and could squeeze farm margins. Demand from India and China will set near-term nitrogen price direction.
farmprogress.comBryce KnorrNov 24, 2020After 176 past bullish trade events, Urea moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +2.4%), and +1.6% over 20.
Not enough comparable past events yet for a historical read.
After 193 past bullish trade events, DAP moved a median +0.4% over 5 sessions (54% higher; middle half -0.3% to +1.8%), and +1.9% over 20.
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.
Reports of rising phosphate prices (DAP) alongside urea and potash as growers ramp up fall applications points to firmer demand, which could partly support a DAP price jump, though the 7% rise is described as cumulative from COVID lows and not a one-day shock.
