Fertilizer Prices Fall, Diesel Prices Climb

USAgNet - Late last week, Bloomberg writers Elizabeth Elkin and Allison Smith reported that, “North American farmers could be looking at less expensive crop nutrients this year, potentially easing the pressure on food costs that have pushed up consumer prices.

“The Green Markets North American Fertilizer Price Index, which more than doubled in 2021, fell 5.2% Friday after spiraling down the most since 2009 last week. Prices for New Orleans urea, a type of nitrogen fertilizer, fell 6.2% to the lowest since October as reports of full warehouses signal ‘the new price level is here to stay,’ said Alexis Maxwell, an analyst at Bloomberg’s Green Markets.”

The Bloomberg article explained that, “Fertilizer prices soared to repeated records over the last few months, spurred by setbacks including an energy crunch in Europe, unexpected plant closures and halted exports from major suppliers. The increase has stoked concerns over prospects for further food inflation at a time when consumers are already paying more for staples like grains and coffee.”

Meanwhile, the USDA’s Economic Research Service stated in its monthly Feed Outlook report last week that, “Fertilizer costs have increased throughout 2021, particularly over the last 6 months. [The figure below] charts spot fertilizer prices reported in Iowa over a 10-year period, as published by the USDA’s Agricultural Marketing Service.

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