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Fertilizer prices extend rebound; inflation fears grow

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(Bloomberg) — Fertilizer prices jumped to a new record as Russia’s invasion of Ukraine disrupts global trade, prompting buyers to seek nutrient supplies elsewhere and raising concerns about rising prices. food costs.

The Green Markets North America Fertilizer Price Index rose 1.8% on Friday, as the war in Ukraine stoked fears of supply constraints on agricultural inputs farmers rely on to grow food. Russia is a key producer of fertilizers, accounting for almost a fifth of world exports last year.

“Fertilizer prices are picking up steam as US spring demand kicks in and there is no relief in sight for the current fertilizer supply shortage,” Alexis Maxwell, an analyst at Bloomberg Green Markets, said in a statement. Email. “We think we haven’t reached the maximum level yet.”

The war has pushed up prices for natural gas, a key assumption for most nitrogenous fertilizers, forcing some European producers to cut production. Russia, which is facing sanctions for its attack on Ukraine, has also instructed domestic fertilizer producers to cut exports, further fueling fears of shortages and prompting buyers to seek trial alternatives.

Values ​​for urea, a used nutrient community, were down 2.8% in New Orleans, while potash in the US Corn Belt was up 1.2% from the previous week. The price of ammonia in Tampa was 43% a new record.

original note:

Fertilizer prices extend rally to stoke food inflation fears (1)

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