Phosphate Prices Hit Highest Level Since 2012, As Nitrogen Prices Also Climb
Nitrogen Prices Increase 030221
Fertilizer prices continue to climb, as higher demand and strained supplies are creating issues. According to Rabobank's latest RaboResearch North America Agribusiness Review, phosphate prices are now at the highest levels in North America since 2012.
The report also shows urea is likely to see further price movement, as higher corn prices improve appetite for demand are key drivers of the market.
The sticker shock is also happening with nitrogen. Ken Ferrie, Farm Journal Field Agronomist and owner of Crop-Tech Consulting, Heyworth, Ill., says nitrogen prices were already moving higher, but the Texas freeze didn't help, putting a strain on production.
“The nitrogen market is also climbing and seems to be climbing on a weekly basis,” says Ferrie. “Some of that is probably tied to corn prices as well, but you hear more due to the recent cold snap. They had to reroute some of this natural gas to heating instead of making nitrogen, so some of the facilities have been slowed down or shut down. That’s especially the case in the Texas situation where they had to move to heating. So, it's putting pressure on that market."
With issues sourcing fertilizer in some places, industry experts predict the higher fertilizer prices to last through spring.
Rabo's February report also stated price and supply concerns. "Looking further ahead, some buying opportunities may emerge as we look into the 2022 season for other inputs, as well. The potential risk for seed price increases headed into the 2022 planting season should be considered.
Learn more about why farmers are experiencing sticker shock with fertilizer prices.