Fertilizer prices jump in North America on race for supplies

North American fertilizer prices rose the most in almost five months this week as a global competition for supplies means farmers could still have a ways to go before seeing relief from high nutrient costs.

The Green Markets North America Fertilizer Price Index jumped 11%, the most since the week ended Sept. 10. India, the world’s largest importer of the popular nitrogen fertilizer urea, is looking to buy product later than usual. That will increase competition for nitrogen in the first quarter of 2022, when the U.S. and Europe are looking to buy, said Alexis Maxwell, an analyst for Bloomberg’s Green Markets.

“India’s seasonally late urea tender firmed a market looking for direction,” she said by email. “Prices rose globally with the U.S. market up $90 per short ton on the news.”

Urea prices in New Orleans rose 10% this week, also the most since September.

Crop nutrient prices have surged to records around the world following an energy crunch that curbed production in Europe, while supplies also face threats from export curbs and trade sanctions. Though prices in the U.S. have dipped off records, they remain high. That’s adding to costs for farmers and prompting some to curb fertilizer usage, threatening to curb crop yields and further raise global food prices that are near a record high.