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S&P Global reports that COVID-19 has hit the fertilizer sector since the outset, mainly in China, the largest producer and consumer of phosphates, sulphur and sulphuric acid. Plant shutdowns from late January and transport constraints tightened phosphate supply and pushed prices up, while sulphuric acid prices collapsed.
China's agriculture ministry said it will monitor fertilizer prices to prevent unreasonable increases.
Tighter Chinese phosphate supply supports DAP and TSP prices, which raises feed-phosphate and crop-input costs. Brazil and India could become the next pressure points.
spglobal.comMar 24, 2020After 31 past bullish logistics events, DAP moved a median +0.5% over 5 sessions (58% higher; middle half -0.4% to +0.9%), and +1.6% over 20.
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.
