# The urea price continues to fluctuate, and the industry association calls for "avoiding speculation following the trend"

> The China Agricultural Materials Circulation Association said urea prices have moved away from supply and demand fundamentals because of speculation in domestic futures. Futures rose from 1649 yuan/ton in June to 2356 yuan/ton on September 1, and the national average wholesale urea price reached 2547.18 yuan/ton on August 28. The association urged market participants to avoid following the trend.

- Date: 2023-09-05 · published 2023-09-05T12:00:00.000Z
- Category: market · region China · magnitude medium
- Page: https://feedsoft.ai/events/9882-the-urea-price-continues-to-fluctuate-and-the-industry-association-calls-for
- Commodities: [Urea](https://feedsoft.ai/c/UREA.md)

## Why it matters

Speculative futures buying has pushed domestic urea prices well above fundamentals, and a regulatory push to cool speculation could reverse some of that gain.

## Read by commodity

- UREA: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| UREA | 2023-09-05 | 1 | +11.9% | 3.5 | Speculative domestic futures rally in China pushed prices away from fundamentals into early September, adding sentiment-driven upward pressure that preceded the move. |

## Sources

- woldigroup.com: https://www.woldigroup.com/news/the-urea-price-continues-to-fluctuate-and-the-industry-association-calls-for-avoiding-speculation-following-the-trend-223551.html

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