As nitrogen-based fertilizer prices soar, global food inflation looms
Nitrogen-based fertilizer prices are soaring due to the conflict in West Asia, threatening to exert upward pressure on global food prices over the next 15 months. Global urea prices have rallied sharply, with US Gulf Urea climbing 50% between February 27 and April 20 to $693/tonne.
A secondary wave of global food inflation looms as nitrogen-based fertilizer prices soar due to the conflict in West Asia. Global urea prices have surged, with US Gulf Urea rising 50% to $693/tonne between February 27 and April 20. The West Asia front-month contract jumped 76% to $850/tonne after the Strait of Hormuz was effectively closed, disrupting a third of global urea shipments. The impact is expected to be gradual but severe for lower-income emerging markets. Fertilizer costs have increased significantly in the EU, US, and Brazil. The conflict has driven a reorientation of hedging activity, with average daily traded volumes in US Gulf Urea futures rising 490% year-on-year through March.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.