Urea Fertilizer Prices Spikes in US post Russia’s attack on Ukraine
Urea prices are currently at record levels, owing to cost support from upstream Natural gas and Coal, driving the price trend upward. Following the incursion of Ukraine, Urea markets, particularly west of the Suez Canal, saw a rise, spurred by rising gas prices and supply uncertainties. Russia is the world's largest fertilizer exporter, but its conflict with Ukraine has hindered shipping and raised natural gas costs, a significant element in fertilizer production. Since the invasion began, Urea fertilizers futures have increased by 32% globally. The prospect of shipments being disrupted comes as fertilizer costs have already been rising because of higher upstream values, which have led some factories to suspend or limit production. As crop costs rise, the jump in the nutrient is fuelling fears of rising food inflation. Rising inflation in the United States has also weighed on the Nitrogen fertilizer prices. FOB Corn Belt prices have remained in a range of USD 1,350 – USD 1...