Nitrogen Fertilizer Jumps by Record on Russian Supply Concerns
Nitrogen Fertilizer Jumps by Record on Russian Supply Concerns
(Bloomberg) -- Fertilizer prices are skyrocketing on concerns that Russia’s invasion of Ukraine will curtail global supplies.
Prices for the popular nitrogen fertilizer urea in New Orleans surged 29% to $705 per short ton Friday, a record increase in the 45-year existence of the gauge.
Russia was the world’s largest exporter of nitrogen products as recently as last year and the potential for reduced supplies in light of U.S. and European sanctions are weighing heavily on the market.
“Reduced exports would tighten balances in Northern Hemisphere agricultural markets first,” Alexis Maxwell, an analyst for Bloomberg’s Green Markets, wrote in a report.
The risk of supply disruptions comes as fertilizer costs already are elevate because of soaring natural gas costs in Europe that prompted some manufacturers to curtail or halt production. The spike for the nutrient is stoking concerns about rising food inflation as crop prices climb.
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