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Fertilizer prices have retreated sharply in recent weeks as concerns over prolonged supply disruptions tied to tensions in the Middle East have eased. That’s offering potential relief for crop producers heading into the next growing season.
Bloomberg said that urea prices in New Orleans fell to $453.50 per short ton last week, down 36 percent from mid-April and the lowest level since early February. The decline follows fears that conflict involving Iran could disrupt shipments through the Strait of Hormuz, a key route for global fertilizer exports. The drop in fertilizer costs has also pressured grain markets, with prices for corn, wheat, and other commodities moving lower as input cost concerns subside.
Nearly half of the world’s urea exports originate from countries affected by the conflict, making fertilizer markets highly sensitive to geopolitical developments. Analysts caution that fertilizer markets remain vulnerable to renewed geopolitical tensions and fluctuations in global energy prices.
NAFB news service
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