North American Fertilizer Shortage
November 25th, 2021Via: Guardian:
A global shortage of nitrogen fertilizer is driving prices to record levels, prompting North America’s farmers to delay purchases and raising the risk of a spring scramble to apply the crop nutrient before planting season.
Farmers apply nitrogen to boost yields of corn, canola and wheat, and higher fertilizer costs could translate into higher meat and bread prices.
World food prices hit a 10-year high in October, according to the UN food agency, led by increases in cereal crops such as wheat and vegetable oils.
The Texas Arctic blast in February and Hurricane Ida in August disrupted US fertilizer production. Then, prices of natural gas, a key input in producing nitrogen, soared in Europe due to high demand and low supplies. Global urea prices this month topped $1,000 a tonne for the first time, according to BMO Capital Markets. Russia and China have curbed exports.
In the US, nitrogen fertilizer supplies are adequate for applications before winter, said Daren Coppock, CEO at the US-based Agricultural Retailers Association. Applying fertilizer before winter reduces farmers’ spring workload.
But with prices so high, some farmers are delaying purchases, risking a scramble for supplies during their busiest time of year, Coppock said.
Check this out for more details on the situation …
http://www.williamengdahl.com/englishNEO12Nov2021.php