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Fertilizer price index plummets, at least for now • Farm Policy News

Bloomberg writer Elizabeth Elkin reported on Friday that “The surge in fertilizer prices that ultimately helped drive up food inflation tumbled this week, but the reprieve can be short-lived.

Green Markets’ North American fertilizer price index fell 12% on Friday, the highest since 2009.

The prices of urea, a type of nitrogen fertilizer, have fluctuated sharply. They have risen and fallen by more than $ 100 a short ton every day this week as the market tried to gauge the outlook for spring demand and natural gas hit record highs in Europe, said Alexis Maxwell, analyst at Green Markets.

“Fertilizer prices collapse the most since 2009 during the Red-Hot rally break,” by Elizabeth Elkin. Bloomberg News (January 7, 2022).

The Bloomberg article added that “this week’s decline is not a sign that high fertilizer prices will continue to fall, Maxwell said in an email.

“Large producers like the Middle East and Egypt are depleted urea until February and a lot of Europe remains closed – so those looking for tons will have to look far,’ she said. ‘China, the best option for aftermarket supply, remains out of the market due to an export ban that runs until May. ‘ “

Meanwhile, a separate Bloomberg article published Friday by Jen Skerritt and Elizabeth Elkin said, “These are boom times in the fertilizer market, with record prices amid high demand. But the world’s biggest producer is in disarray after losing two CEOs in less than a year, and investors are still waiting for an explanation on the latest departure.

The surprise departure this week of the CEO of Nutrien Ltd. Mayo Schmidt, just eight months after taking office, fueled concerns about corporate governance within the Canadian company.

“Frequent changes of leadership in a business can sometimes be a sign of instability or mismanagement,” the Bloomberg article said.

Margarita W. Wilson

The author Margarita W. Wilson