Fertilizer Prices Soar Near 2008 Highs on Supply Shocks, Concerns Sprout Over Sourcing Enough for 2022 U.S. Corn Acres
The fertilizer industry is swarmed with Black Swan events. From the impacts of Hurricane Ida to political and climate issues entangled in a cobweb of production slowdowns in Europe and China, the Black Swan events continue to stack up.
According to Josh Linville of StoneX Group, on Monday, the Chinese government effectively banned phosphate exports through June 2022. The news comes as China's production was already throttled by climate emission concerns from production plants. The impact is already being seen with prices, as China accounts for almost one-third of the world phosphate trade.
The phosphate ban is just the latest in a series of events that are leading to a supply shock for fertilizer ahead of the 2022 growing season. And that supply shock is creating a price spike that can only compare to 2008, with concerns the most recent strains could cause prices to surpass the record-high fertilizer prices farmers saw in 2008.
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According to Josh Linville of StoneX Group, on Monday, the Chinese government effectively banned phosphate exports through June 2022. The news comes as China's production was already throttled by climate emission concerns from production plants. The impact is already being seen with prices, as China accounts for almost one-third of the world phosphate trade.
The phosphate ban is just the latest in a series of events that are leading to a supply shock for fertilizer ahead of the 2022 growing season. And that supply shock is creating a price spike that can only compare to 2008, with concerns the most recent strains could cause prices to surpass the record-high fertilizer prices farmers saw in 2008.
Click Here to read more.