Fertilizer Prices Drop 30% Following Demand Destruction

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(Bloomberg) -- Fertilizer prices that had deed records are present plunging arsenic buyers reel from sticker shock, but that doesn’t mean the marketplace compression is over.

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The June spot terms successful Tampa, Florida for the nitrogen fertilizer ammonia settled astatine $1,000 per metric ton, a driblet of 30% from May’s $1,425 per metric ton, according to Green Markets, a Bloomberg company. Even with the drop, however, prices for ammonia are inactive 87% higher than a twelvemonth ago, and proviso concatenation issues proceed to wreak havoc connected planetary markets.

Demand demolition is portion of the decline. Places similar Southeast Asia are seeing buyers unwilling to wage the grounds precocious prices for ammonia that were posted successful April and May, said Green Markets expert Alexis Maxwell. It besides reflects the declining outgo of ammonia accumulation arsenic European earthy state prices fell successful the 2nd quarter, she said.

Read More: Can the World Feed Itself? A Fertilizer Crunch Is Wrecking Crops

Wholesale prices for different benignant of nitrogen fertilizer, urea, dropped astir 8% Friday successful New Orleans to $585 per abbreviated ton. But retail prices are inactive astir treble that, astatine $1,030 per abbreviated ton.

(Adds further details successful archetypal paragraph, urea prices successful past paragraph)

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