This story was originally posted on May 27, 2022.
Fertilizer prices, led by CF Industries, fell in Thursday’s trading. Nitrogen prices reportedly plunged 30%, partly due to demand destruction.
According to Bloomberg, the June spot price in Tampa, Florida, for ammonia nitrogen fertilizer settled at $1,000 per metric ton, a 30% drop from May’s $1,425 per ton.
Southeast Asia and other places are seeing more buyers who are unwilling to pay the record high prices that were seen in April and May, and the cost of ammonia production has declined as European natural gas prices fell in the second quarter, Green Markets analyst Alexis Maxwell told Bloomberg.
Nitrogen Prices Surged 133% from 2021 to 2022
A recent report by the Agricultural and Food Policy Center (AFPC) at Texas A&M University shows higher input prices are having a larger impact on farmers than originally thought. That’s after Texas A&M economists recently found nitrogen prices surged 133% in a year.
The latest report, compiled by Joe Outlaw, Ph.D., and Bart Fischer, Ph.D., co-directors of the AFPC, found:
- Net cash farm income on the representative feed grain and oilseed farms is projected to decline by an average of $534,000 from 2021 to 2022 across the 25 feed grain and oilseed farms.
- Representative wheat farms face an average reduction in net cash farm income of $399,000.
- Representative cotton farms face an average reduction in net cash farm income of $716,000.
- Rice farms face the largest reduction in net cash farm income per farm at $880,000 and a per acre reduction of $442.
