# Supply Lines Latest: Global Inflation Is Coming for Fertilizer - Bloomberg

> 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.

- Date: 2021-08-27 · published 2021-08-27T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6007-supply-lines-latest-global-inflation-is-coming-for-fertilizer-bloomberg
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [Potash (KCl)](https://feedsoft.ai/c/POTASH.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

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.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲
- POTASH: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DAP | 2021-08-27 | 1 | +2.2% | 3.8 | 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. |
| DAP | 2021-08-26 | 1 | +2.2% | 4.7 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2022-01-21 | [The Fertilizer Crisis Is Getting Real for Europe Food Prices - Bloomberg](https://feedsoft.ai/events/43072-the-fertilizer-crisis-is-getting-real-for-europe-food-prices-bloomberg.md) | 0.0% | -8.0% |
| UREA | 2022-09-02 | [Fertilizer Costs Are Surging Again Just as US Farmers Look to Buy - Bloomberg](https://feedsoft.ai/events/39880-fertilizer-costs-are-surging-again-just-as-us-farmers-look-to-buy-bloomberg.md) | -5.4% | -10.5% |
| UREA | 2022-08-05 | [Nitrogen Fertilizer Prices Are Spiking as Natural Gas Soars - Bloomberg](https://feedsoft.ai/events/40356-nitrogen-fertilizer-prices-are-spiking-as-natural-gas-soars-bloomberg.md) | -4.5% | +13.6% |
| UREA | 2023-09-19 | [Global supply constraints push up UK fertiliser prices - Farmers Weekly](https://feedsoft.ai/events/34019-global-supply-constraints-push-up-uk-fertiliser-prices-farmers-weekly.md) | -0.5% | -6.2% |
| UREA | 2022-01-19 | [High natural gas prices could lead to spike in food costs through fertilizer link \| S&P Global](https://feedsoft.ai/events/43069-high-natural-gas-prices-could-lead-to-spike-in-food-costs-through-fertilizer.md) | -0.3% | -11.2% |
| DAP | 2022-01-19 | [High natural gas prices could lead to spike in food costs through fertilizer link \| S&P Global](https://feedsoft.ai/events/43069-high-natural-gas-prices-could-lead-to-spike-in-food-costs-through-fertilizer.md) | -0.5% | +1.7% |
| DAP | 2022-04-25 | [High fertilizer prices contribute to rising global food security concerns \| IFPRI](https://feedsoft.ai/events/41764-high-fertilizer-prices-contribute-to-rising-global-food-security-concerns-ifpri.md) | -7.9% | -10.0% |
| DAP | 2022-01-10 | [Why the cost of fertilizer is rising](https://feedsoft.ai/events/43075-why-the-cost-of-fertilizer-is-rising.md) | -1.4% | +0.3% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/newsletters/2021-08-27/supply-lines-latest-global-inflation-is-coming-for-fertilizer

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.