# Southern Hemisphere Consumers Benefit as Global Urea Prices Take a Steep Dive

> Urea demand was slow in the US, Europe and Brazil before the main second-half buying season. Middle East urea FOB fell over $25 per tonne on Asian trades, Brazilian prices dropped about $15 per tonne, and ammonia prices fell as European gas costs declined. Freight rates east of Suez were reportedly cut in half.

- Date: 2023-05-29 · published 2023-05-29T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8825-southern-hemisphere-consumers-benefit-as-global-urea-prices-take-a-steep-dive
- Commodities: [Natural Gas](https://feedsoft.ai/c/NATGAS.md), [Urea](https://feedsoft.ai/c/UREA.md), [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

Lower feedstock and freight costs push global nitrogen fertilizer prices down, which eases input costs for grain and feed producers. Falling Chinese and Middle East export prices reinforce the downward trend in urea.

## Read by commodity

- UREA: bearish ▼
- NATGAS: bearish ▼
- OCEANFRT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| UREA | 2023-05-30 | 5 | -21.5% | -4.5 | Reports a steep global urea price drop in the same week, with Middle East FOB down over $25/t and Brazil down about $15/t on weak demand before the main buying season, directly matching the move. |
| UREA | 2023-06-02 | 5 | -20.9% | -3.7 | Slow demand ahead of the main buying season cut Middle East FOB by over $25/t and Brazil by about $15/t, with lower gas costs and freight adding downward pressure during the week of the move. |

## Sources

- chemanalyst.com: https://www.chemanalyst.com/NewsAndDeals/NewsDetails/southern-hemisphere-consumers-benefit-as-global-urea-prices-take-a-steep-dive-17462
- profercy.com: https://www.profercy.com/insights/urea-prices-bolstered-by-supply-cutbacks-chinese-export-restraint-and-short-covering-for-europe

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