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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The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
“This flight between Israel and Iran had a very direct relationship to the urea market.”
“We’ve got to keep our head up... there will be opportunities as we move forward.”
