5 Things to Know About Crop Nutrient Costs
Even as prices for crop nutrients continue to soar, growers remain engaged in the market, according to CHS. They have cash on hand and tell us they’re confident about what they’re growing this spring. Despite that positive sentiment, we’re keeping a careful eye on world events in our forecasting models. Consider these factors as you make decisions about crop nutrient purchases.
1. Nitrogen supply in the U.S. is adequate — for now.
There’s plenty of nitrogen production in the United States, but we’re still seeing cost increases because U.S. prices generally follow global prices. In the U.S., we imported a lot of fertilizer before the current price run-up, so we don’t have severe fertilizer supply chain issues right now. There might be localized problems in some areas of the country, but on a macro level the U.S. is looking good.
2. Russia’s invasion of Ukraine changes the equation.
Ukraine and Russia produce and export nitrogen-based fertilizers, contributing about 20% of the global trade flow. Right now, Ukraine can’t produce fertilizer, get it to port or ship it out. We don’t know yet what the supply chain will look like later this year if we can’t source product due to this situation.
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