Economists are warning fertilizer prices are not jiving with grain values right now, and the situation is approaching near record levels.
Josh Linville with StoneX says the urea to corn ratio is at 99 bushels per ton right now, and UAN is at 79 bushels per ton. Linville says those statistics are the second worst in history for this time of year.
He cites a number of reasons, including plant maintenance, restrictions on Russian imports, and uncertainty out of major supply regions like Trinidad.
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Fertilizer still consumes an unusually large share of crop value.
President Donald Trump signed an executive order this week to accelerate domestic production of phosphorus and glyphosate, signaling that farm input availability is now treated as a national security risk.
Fuel costs ease over the long term, but fertilizer energy remains volatile.
Lower oil prices may trim input costs but pressure biofuel demand.
Cold-driven spikes in gas prices can quickly raise fertilizer and energy costs.
Nitrogen and phosphate markets are tightening ahead of spring, keeping fertilizer costs elevated while crop prices lag.
