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    Home > Food News > Food Articles > Fertilizer focus: The supply is tightening, and the price of fertilizer soars to a record high

    Fertilizer focus: The supply is tightening, and the price of fertilizer soars to a record high

    • Last Update: 2021-12-01
    • Source: Internet
    • Author: User
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    Foreign media news on November 14: The price of chemical fertilizers has risen to unprecedented heights, heralding the rising costs of farmers and consumers around the world
    .
     
    On Friday, the Green Market North American Fertilizer Price Index (GMNAFPI) rose 4.
    4% to US$1,094.
    35 per short ton, surpassing the highest record set a week ago
    .
    New Orleans urea, a nitrogen fertilizer popular with farmers, rose 8.
    3% in price to US$812 per short ton, as major fertilizer producer CF Industrial Holdings warned of continued supply shortages
    .

     
    Due to the energy shortage in Europe, the price of natural gas has risen, and natural gas is the main raw material for the production of chemical fertilizers, which has also caused the price of chemical fertilizers to soar
    .
    China and Russia restrict fertilizer exports to ensure adequate domestic supply
    .
    In the United States, the Consumer Price Index (CPI) rose 6.
    2% year-on-year in October, which was also the worst inflation since 1990
    .
     
    The United States is a major fertilizer importer, with 20% of urea and 40% of ammonium nitrate imported from Russia
    .
    The surge in fertilizer prices has also boosted prices for crops ranging from grains to coffee, as traders worry about supply shortages and the surge in production costs may damage crop yields
    .
    With the rising cost of fertilizers and other inputs, American farmers will shift 2.
    5 million acres of farmland from corn to soybeans next year
    .
    Soybeans are less dependent on chemical fertilizers than corn
    .
    Analysts said that the price of ammonia fertilizer has risen by 65% ​​since September, and there are signs that farmers are unable or unwilling to absorb the rising cost of ammonia fertilizer
    .
     
      CF Industrial Holdings said that when corn and soybean inventories have been at low levels for many years, the supply of nitrogen fertilizers is generally shrinking, which is expected to affect the global cereal production in the next season
    .
     
      Since the third quarter, due to Hurricane Ida's plant shutdown and record natural gas costs, nitrogen production in the United States and Europe has been hampered
    .
    At the same time, major producers China and Russia have imposed restrictions on fertilizer exports-contributing to multi-year high nitrogen fertilizer prices and restricting supplies in major agricultural areas such as Brazil and India
    .

     
      Porter Frost, senior vice president of marketing and supply chain at CF, said that the demand for fertilizers in 2022 is expected to far exceed global supply, and global grain production may be affected
    .
    The potential for strong demand for fertilizers will continue beyond 2023
    .
    Due to supply constraints, some areas cannot obtain sufficient fertilizers, resulting in a decline in crop yields
    .
    If this happens, strong demand will continue into the next few years, as more than two growing seasons are needed to replenish global grain and oilseed stocks
    .
    For major agricultural centers that rely heavily on imports, such as Europe and Brazil, the direction of nitrogen fertilizer exports depends on profit margins
    .
     
      Recently, the Russian government has introduced export ceilings for nitrogen-based fertilizers, diammonium phosphate (DAP), monoammonium phosphate (MAP) and compound fertilizers.
    The validity period is from December 1, 2021 to May 31, 2022
    .
    Trade data show that between December and May 2020, Russia's exports of urea, ammonia fertilizer and urea ammonium nitrate solution (UAN) amounted to 6.
    43 million tons
    .
    The export ceiling set by the government is 5.
    9 million tons, which is equivalent to a monthly reduction of about 90,000 tons in the export volume of three products
    .
    Brazilian and European farmers have to compete for limited fertilizer
    .
     
      The reduction in fertilizer supply comes as farmers in the Black Sea and Europe are preparing for planting of the 2022/23 crops
    .
    After the shortage of fertilizer supply this year, wheat production next year may be affected
    .
    The consulting agency Agritel estimates that with the reduction in fertilizer use, the world’s top eight wheat exporting countries may only produce 398.
    1 million tons of wheat next year, which is lower than the baseline forecast of 409.
    4 million tons.
    This may prompt farmers to plant less fertilizer-intensive ones.
    Crops include sunflower seeds and rapeseed
    .
     
      However, the demand for ammonia fertilizer in the United States will hit the strongest level since 2012, which means that the US corn production will be high again
    .
    Frost said that the demand for nitrogen fertilizer delivered in the first and second quarters of next year will further support the expectation of a bumper corn harvest in the United States in 2022.
    CF estimates that the United States will plant about 93 million acres of corn next year
    .
    He is not.
    The fertilizer supply next spring can meet the fertilizer demand
    .
    Imports are increasing, and domestic production will recover
    .

    Price consumer
     
      On Friday, the Green Market North American Fertilizer Price Index (GMNAFPI) rose 4.
    4% to US$1,094.
    35 per short ton, surpassing the highest record set a week ago
    .
    New Orleans urea, a nitrogen fertilizer popular with farmers, rose 8.
    3% in price to US$812 per short ton, as major fertilizer producer CF Industrial Holdings warned of continued supply shortages
    .

     
      Due to the energy shortage in Europe, the price of natural gas has risen, and natural gas is the main raw material for the production of chemical fertilizers, which has also caused the price of chemical fertilizers to soar
    .
    China and Russia restrict fertilizer exports to ensure adequate domestic supply
    .
    In the United States, the Consumer Price Index (CPI) rose 6.
    2% year-on-year in October, which was also the worst inflation since 1990
    .
     
      The United States is a major fertilizer importer, with 20% of urea and 40% of ammonium nitrate imported from Russia
    .
    The surge in fertilizer prices has also boosted prices for crops ranging from grains to coffee, as traders worry about supply shortages and the surge in production costs may damage crop yields
    .
    With the rising cost of fertilizers and other inputs, American farmers will shift 2.
    5 million acres of farmland from corn to soybeans next year
    .
    Soybeans are less dependent on chemical fertilizers than corn
    .
    Analysts said that the price of ammonia fertilizer has risen by 65% ​​since September, and there are signs that farmers are unable or unwilling to absorb the rising cost of ammonia fertilizer
    .
     
      CF Industrial Holdings said that when corn and soybean inventories have been at low levels for many years, the supply of nitrogen fertilizers is generally shrinking, which is expected to affect the global cereal production in the next season
    .
     
      Since the third quarter, due to Hurricane Ida's plant shutdown and record natural gas costs, nitrogen production in the United States and Europe has been hampered
    .
    At the same time, major producers China and Russia have imposed restrictions on fertilizer exports-contributing to multi-year high nitrogen fertilizer prices and restricting supplies in major agricultural areas such as Brazil and India
    .

     
      Porter Frost, senior vice president of marketing and supply chain at CF, said that the demand for fertilizers in 2022 is expected to far exceed global supply, and global grain production may be affected
    .
    The potential for strong demand for fertilizers will continue beyond 2023
    .
    Due to supply constraints, some areas cannot obtain sufficient fertilizers, resulting in a decline in crop yields
    .
    If this happens, strong demand will continue into the next few years, as more than two growing seasons are needed to replenish global grain and oilseed stocks
    .
    For major agricultural centers that rely heavily on imports, such as Europe and Brazil, the direction of nitrogen fertilizer exports depends on profit margins
    .
     
      Recently, the Russian government has introduced export ceilings for nitrogen-based fertilizers, diammonium phosphate (DAP), monoammonium phosphate (MAP) and compound fertilizers.
    The validity period is from December 1, 2021 to May 31, 2022
    .
    Trade data show that between December and May 2020, Russia's exports of urea, ammonia fertilizer and urea ammonium nitrate solution (UAN) amounted to 6.
    43 million tons
    .
    The export ceiling set by the government is 5.
    9 million tons, which is equivalent to a monthly reduction of about 90,000 tons in the export volume of three products
    .
    Brazilian and European farmers have to compete for limited fertilizer
    .
     
      The reduction in fertilizer supply comes as farmers in the Black Sea and Europe are preparing for planting of the 2022/23 crops
    .
    After the shortage of fertilizer supply this year, wheat production next year may be affected
    .
    The consulting agency Agritel estimates that with the reduction in fertilizer use, the world’s top eight wheat exporting countries may only produce 398.
    1 million tons of wheat next year, which is lower than the baseline forecast of 409.
    4 million tons.
    This may prompt farmers to plant less fertilizer-intensive ones.
    Crops include sunflower seeds and rapeseed
    .
     
      However, the demand for ammonia fertilizer in the United States will hit the strongest level since 2012, which means that the US corn production will be high again
    .
    Frost said that the demand for nitrogen fertilizer delivered in the first and second quarters of next year will further support the expectation of a bumper corn harvest in the United States in 2022.
    CF estimates that the United States will plant about 93 million acres of corn next year
    .
    He is not.
    The fertilizer supply next spring can meet the fertilizer demand
    .
    Imports are increasing, and domestic production will recover
    .
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