Fertilizer prices have reached record levels as Russia’s invasion of Ukraine puts a large portion of the world’s fertilizer supply at risk.
A gauge of prices for the nitrogen fertilizer ammonia rose 43% to $1,625 U.S. per metric ton, a record level. Production outages and tight global supplies are driving the price increases, according to industry data.
The war in Ukraine is pushing up the cost of natural gas, the main input for most nitrogen fertilizer, forcing some producers in Europe to cut output. Markets also worry that potential sanctions on Russia, a big low-cost shipper of every type of crop nutrient, could disrupt global supplies.
Russia has urged domestic fertilizer producers to reduce exports, further stoking fears of global shortages and food inflation. Russia accounted for a fifth of all fertilizer exports in 2021, according to the Trade Data Monitor.
At the same time, prices for crops such as wheat, corn and soybeans are soaring. Rising costs for farm inputs such as fertilizer could further send the price of food up in coming months, say analysts.
