By Ryan Hanrahan
Progressive Farmer’s Russ Quinn reported that “farmers could see even higher fuel and fertilizer costs for this spring with the start of the military conflict between the U.S. and Israel against Iran in the Middle East.”
“The now closed Strait of Hormuz moves about 20 million barrels of crude oil and other petroleum products each day, which is about 20% of global demand. Diesel futures prices moved to a two-year high on Monday,” Quinn reported. “Fertilizer exports also move through the Strait. About a quarter of the globally traded nitrogen market moves through the waterway, according to a fertilizer analyst.”
“As a result, nitrogen fertilizer at the port of New Orleans has seen an increase in price this week,” Quinn reported. “Urea prices for barges in New Orleans traded $520/ton to $550/ton on Monday, up from an average of $475/ton last week, according to CRU Group.”
AgWeb’s Michelle Rook reported that “fertilizer prices were already at historical highs prior to the conflict. (Josh) Linville (vice president of fertilizer for StoneX) reports urea markets saw the sharpest increases, followed by phosphate.” …’We have had prices up about $70 a ton from Friday afternoon trade. It’s been significant,’ Linville says. UAN and anhydrous prices have not reacted as violently, but phosphate values are not far behind.”
Source : illinois.edu