Loading…
Fertilizer prices that had reached record highs are falling sharply as buyers resist high prices. Ammonia prices are still 87% higher than a year earlier, and supply chain problems continue.
Demand destruction is pulling fertilizer prices lower, which eases input costs for grain and feed producers. Ammonia prices remain elevated, so the decline is from a very high base.
bloomberg.comElizabeth ElkinMay 26, 2022
chemanalyst.comGabreilla FigueroaMay 30, 2022Not 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.
Demand destruction as buyers resisted record-high prices drove a broad fertilizer price drop, directly consistent with the sharp urea decline.
Reports of fertilizer prices falling sharply on demand destruction as buyers resist record prices match the direction and timing of the one-day urea drop.
Demand destruction from buyer resistance to record prices drove sharp fertilizer price declines, including falling ammonia input costs.
Reports of buyers resisting record prices and a fertilizer price drop of about 30% point to demand destruction and negative sentiment that would add to downward pressure on urea.
