Fertilizer outlook - Supply and demand trends |
Feb 2008
|
Like corn, beans and wheat, fertilizer is a commodity with price determined by tight supply and demand balance. Recently, U.S. fertilizer and nutrient prices have reached record highs and will trend higher as commodities remain strong and until global fertilizer supply catches up with demand. From January 2007 to February 2008, the price of potash increased 139 percent, diammonium phosphate (DAP) by 155 percent and urea by 43 percent. Though fertilizer prices have more than doubled over the last 8 years, it is important to note that their price change is on par with changes in crop prices.
This document reviews the last trends of prices in the fertilizer market and its repercussions on the U.S. agricultural market.
|
