Farmdoc from the University of Illinois says the ag sector is closely watching the fertilizer markets this week because of the ongoing war in the Middle East.
Following months of tight supplies, global nitrogen values started rising last week. The story of the week was Iran’s attack on Israel. The Middle East is an important area for fertilizer production in general, but it’s especially important for nitrogen.
“When you look at the attack on Israel, Iran didn’t impact any shipping lanes, it didn’t have any impact on fertilizer production, yet prices moved higher,” says Josh Linville of StoneX.
He also says the attack on Israel may have forced the market to finally admit that supplies are tight, and it’s manifesting in higher prices.
Urea prices are one example of moving higher, up 10 percent as of last week.
Linville advises farmers to contact their fertilizer retailers as soon as possible.