High crop prices and generally tight stocks are bullish for fertilizer prices, from a demand-pull side. But fertilizer prices are also up on supply-push factors: short supply, distribution, and higher natural gas costs which are about 70 to 80 percent of nitrogen fertilizer costs.
Anhydrous ammonia, which is still the lowest cost per unit nitrogen, is seeing record prices. Input costs will be a factor in planting decisions for next year. Nitrogen costs for 2021/2022 are up about 130 percent from 2020/2021. Below is a table looking at nitrogen costs for corn; the values are the anhydrous ammonia prices the first week in November for the past four years, compared to the following year December corn futures contract based on the Iowa State...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
