Fertilizer Prices Fall Amid Falling Demand

Prices for mineral fertilizers are falling in the world. The reason lies in the decline in demand. Farmers do not want to buy fertilizers at the prices that are currently on the market. According to Bloomberg, the world is witnessing a trend of farmers abandoning too expensive resources. Accordingly, the demand for potassium, phosphates, and ammonia falls.

The urea index of standard nitrogen fertilizers in New Orleans fell 3.2% on Oct. 14. Thus, the downward trend continued. Farmers in the US do not buy fertilizers, waiting for the peak of falling prices for these goods. Farmers from Brazil behave similarly. However, the cost of nitrogen fertilizer remains at 5 times the historical average.

This season, Brazil has set a record for the export of nitrogen fertilizers. The country overfilled its storage facilities, forcing it to re-export goods that were no longer needed. This fertilizer offer puts pressure on prices in international markets. An oversupply of fertilizers in Brazil's domestic market has led to the fact that their price has collapsed by half, compared with the figures in April.