Fertilizer Prices Reach New Highs

In 2021, #Russia exported almost 20% of global #fertilizer supplies.

In addition to proposed sanctions, Russia urged domestic fertilizer producers to reduce exports .

“Natural gas is also a major input for making nitrogen fertilizer.”

Natural #gas markets will continue to experience higher volatility as #Europe continues to reduce its reliance on Russian #energy supplies.

Drought in Brazil

The war in #Ukraine and #drought in #Brazil significantly increased demand for US crops. The costs to ship #grains and #soybeans on the Mississippi River have reached an eight-year high.

For more details, please read Fertilizer Prices Hit New Highs, as Russian Invasion “Exacerbating a Food Shortage”.

Formula for inflation = higher fertilizer prices + higher prices for crops + higher transportation costs + the majority of prices increases passed to the consumer.

In the US, consumer spending represents nearly 70% of GDP.

9 views0 comments

Recent Posts

See All

In 2021, the United States imported about 8.47 million barrels per day of petroleum from 73 countries and at the same time exported about 8.63 million barrels per day to 176 countries. About 51% of US