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Fertilizer prices have reached a nine-year high as global inflation pushes up input costs. Higher freight rates, increased tariffs, rising energy costs and constrained supplies of nitrogen, potash and phosphate are all contributing.
Growers are applying more fertilizer as corn and wheat values have risen.
Higher fertilizer costs raise the cost of grain production, supporting crop prices and feeding through to feed input costs over time. Elevated nitrogen, potash and phosphate prices also squeeze farm margins and may reduce future planted acreage.
bloomberg.comElizabeth ElkinAug 27, 2021After 92 past bullish macro events, Urea moved a median +0.0% over 5 sessions (50% higher; middle half -2.0% to +3.6%), and +4.8% over 20.
Not enough comparable past events yet for a historical read.
After 28 past bullish macro events, DAP moved a median -0.2% over 5 sessions (36% higher; middle half -0.9% to +1.3%), and -0.8% 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.
Bloomberg reported fertilizer prices at a nine-year high on higher freight, energy costs and tight phosphate supply, which directly supports DAP price strength on the day of the move.
Bloomberg reported fertilizer prices at a nine-year high on inflation, freight, energy and tight phosphate supply, which fits the DAP price rise, though it was published a day after the move ended.
