Fertilizer prices finally cooling down!
The latest data from market research firm Green markets shows that the weekly North American fertilizer price index has fallen to $861.34/t in the week ended June 10. The fertilizer price has hit its lowest level since the escalation in Ukraine, a drop of nearly 32% from its highs in early April.
From the perspective of the supply side, the recent release of signals from fertilizer companies to increase production is the main reason for the cooling of fertilizer prices. "Since last year, the price of fertilizers has risen rapidly, increasing the revenue expectations of fertilizer companies. At the same time, the prices of raw materials such as natural gas upstream of fertilizers have recently stabilized. The above two factors have given fertilizer companies a greater incentive to increase production." A research institute in China Chemical analyst TONG said in an interview.
"From the perspective of demand, the global agricultural product planting cycle can be divided into two parts: the northern hemisphere and the southern hemisphere." TONG further said, "From the perspective of the spring sowing period in the northern hemisphere, spring sowing in many agricultural countries has already begun, and the future demand for fertilizers will be Gradual reduction. And Brazil and other southern hemisphere countries have to wait until the autumn of the northern hemisphere, which brings a 'window period' for the demand of the fertilizer market." TONG said.
Josh Linville, deputy head of the fertilizer business at StoneX, a commodity research firm, agrees. "We are still a few months away from returning to farmland in November (in the southern hemisphere), and 10 to 11 months away from spring next year (in the northern hemisphere)," he said.
Josh Linville also said that previously high fertilizer prices had hit growers in many countries, making farmers need to consider fertilizer usage when planting in spring to decide what crops to plant this year. Some farmers prefer to grow soybeans, which require less nitrogen, rather than wheat and corn, which require more nitrogen.
Post time: Jun-16-2022