By Mary Hightower
Urea prices, which spiked with the shuttering of the Strait of Hormuz, are on the decline, but that break comes too late for some farmers, extension experts said.
Scott Stiles, extension economics program associate for the University of Arkansas Division of Agriculture, conducts a weekly survey of fertilizer prices. He says prices have turned lower in recent weeks.
The survey includes urea, a nitrogen source for plants that’s dependent on petroleum.
Between 25 and 35 percent of all globally traded urea moves through the Strait of Hormuz. The United States sources roughly 17 percent of its total domestic urea consumption directly through the strait.
“The average price for urea in our survey this week was $669 per ton,” Stiles said. “That is the lowest weekly average price since the end of February and prior to the Iran conflict.”
Urea prices peaked in mid-April.
“At that time, we were hearing of some quotes as high as $900 per ton,” he said. “Currently, urea prices are 20 to 25 percent below the mid-April highs, depending on location.”
Stiles said that retail urea prices in Arkansas are linked to the New Orleans wholesale barge market.
“Prices there have dropped sharply in recent weeks and are now back at pre-Iran war levels,” he said. “I think some of the Iran war premium is evaporating.”
Source : uada.edu