DTN reports that for the first time in about nine months there was no significant increase in fertilizer prices this past month. Among the eight major components, prices have risen between 36 percent to a 76 percent increase for MAP. Higher crop prices have meant higher farm revenue and increased crop acreage. High crop prices encourage larger crops and thus the increased use of growth boosting inputs.   The price of corn and the relative use of nitrogen (see graph below) is correlated at 0.72 and while crop prices may moderate, global demand for agricultural commodities will continue to expand for the foreseeable future. While nitrogen prices are up 33 percent over the past year, they are still 37 percent lower than the peak the...

TAGS – Feed Grains, Farm Inputs, North America, Macroeconomics