# Fertilizers: Production costs should shake up the market

> Fertilizer production and raw material costs are at high levels and are expected to rise in the fourth quarter, according to INTL FCStone analyst Fábio Rezende. Natural gas, used to make ammonia, has hit its highest level since 2014 on higher oil prices and strong Asian demand. Low global inventories and above-average demand are also supporting prices.

- Date: 2018-10-19 · published 2018-10-19T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/62852-fertilizers-production-costs-should-shake-up-the-market
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md), [DAP](https://feedsoft.ai/c/DAP.md)

## Why it matters

Higher natural gas and ammonia costs raise the floor for nitrogen and phosphate prices like urea and DAP, which tightens the cost outlook for fertilizer-dependent crops. Analysts see little chance of significant price declines in the short term.

## Read by commodity

- DAP: bullish ▲
- UREA: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| UREA | 2025-02-21 | [Friday’s Insider: Urea and gas prices — market in transition — Fertilizer Daily](https://feedsoft.ai/events/26365-friday-s-insider-urea-and-gas-prices-market-in-transition-fertilizer-daily.md) | -0.5% | -4.7% |
| UREA | 2022-01-31 | [Fertilizer Price Increases: Should Farmers be Worried?](https://feedsoft.ai/events/43465-fertilizer-price-increases-should-farmers-be-worried.md) | -5.9% | +6.1% |
| UREA | 2022-01-10 | [Why the cost of fertilizer is rising](https://feedsoft.ai/events/43075-why-the-cost-of-fertilizer-is-rising.md) | -8.8% | -17.6% |
| UREA | 2022-08-25 | [Yara cuts cast doubt on Europe's fertiliser production](https://feedsoft.ai/events/40357-yara-cuts-cast-doubt-on-europe-s-fertiliser-production.md) | +19.3% | +12.8% |
| UREA | 2021-07-02 | [Contradictory signals on the fertilizer market - Inside Mest \| Boerenbusiness. Nl](https://feedsoft.ai/events/46372-contradictory-signals-on-the-fertilizer-market-inside-mest-boerenbusiness-nl.md) | -1.4% | -4.1% |
| DAP | 2022-01-31 | [Fertilizer Price Increases: Should Farmers be Worried?](https://feedsoft.ai/events/43465-fertilizer-price-increases-should-farmers-be-worried.md) | +5.6% | +29.9% |
| 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% |
| 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% |

## Sources

- folhadolitoral.com.br: https://folhadolitoral.com.br/en/editorias/agronegocio/fertilizantes-custos-de-producao-devem-agitar-mercado/

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