NASHVILLE, TENN. (RFD-TV) — Fertilizer prices are rising, and tight global supplies are adding to concerns heading into the next growing season.
StoneX analyst Josh Linville says sulfur availability is a major wildcard for phosphate production.
The Strait of Hormuz accounts for about half of the world’s tradable sulfur supply, Linville says. Disruptions to those shipments are affecting manufacturers, including producers in the United States, where limited availability and high prices can force production rates lower.
Linville says that even with weaker phosphate demand, prices remain elevated because production costs are so high. If prices fall too far, more production could shut down, limiting the market’s ability to bring prices lower.
Meanwhile, DTN’s latest fertilizer price analysis shows all eight major farm nutrients are higher than they were last harvest.
Anhydrous ammonia recorded the largest increase, rising 20 percent over the past year. Urea prices climbed 12 percent, while diammonium phosphate (DAP), potash, and UAN28 each increased 3 percent.
