# Fertilizer Prices Drop 30% Following Demand Destruction - Bloomberg

> 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.

- Date: 2022-05-26 · published 2022-05-26T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6166-fertilizer-prices-drop-30-following-demand-destruction-bloomberg
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

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.

## Read by commodity

- UREA: bearish ▼
- NATGAS: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| UREA | 2022-06-03 | 5 | -17.5% | -3.1 | Demand destruction as buyers resisted record-high prices drove a broad fertilizer price drop, directly consistent with the sharp urea decline. |
| UREA | 2022-05-26 | 1 | -9.5% | -3.9 | 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. |
| UREA | 2022-06-01 | 5 | -17.1% | -2.9 | Demand destruction from buyer resistance to record prices drove sharp fertilizer price declines, including falling ammonia input costs. |
| UREA | 2022-05-27 | 1 | -9.5% | -3.5 | 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. |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2022-05-26/fertilizer-prices-plunge-nearly-30-giving-relief-to-farmers
- chemanalyst.com: https://www.chemanalyst.com/NewsAndDeals/NewsDetails/what-causes-dramatic-drop-in-nitrogen-fertilisers-9907

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