StoneX: Fertilizer Prices Up Again.
Eviston: Unlock NPK You Already Own
Fertilizer prices are up again, says Josh Linville, vice president of fertilizer at StoneX, the marketing intelligence and financial company, and American farmers are again at the mercy of global events.
“These products are all very world-driven,” he says. “We don’t always set the tone or the price – the rest of the world can do that.” Linville says that prices are currently higher than normal across the board for fertilizers and joined the Top Producer podcast to share five key reasons for higher prices this summer.
1. European Production: European natural gas prices have skyrocketed, causing production to decrease. “Europe is producing about 75% of normal,” he says. “We have a shortage of all nitrogen products in Europe.”
2. High Costs in Brazil: Brazil has a similar story and has had to decrease operations most of the year due to high costs. “They basically said ‘We’re not going to produce at a loss and will shut these plants down until we get back to normal.’ Today, that’s unfortunately still normal.”
3. China’s Restrictions: China holds a major share of fertilizer exports, and according to Linville, they have started taking measures to influence the market in nitrogen and phosphates. “The government has figured out if they restrict exports, there’s enough for (their) people, (and) also a lower domestic price,” Linville says.
4. Supply Shortage in Egypt: Restrictions are also coming from Egypt due to heat. “The public demand has skyrocketed as they try to cool their homes. When it gets like that, things start to get tight,” Linville says. “The government will go to the industrial sector and tell them to turn off to get gas supplies to the people who need it.”
5. Import Restrictions: Linville says the U.S. has also restricted imports from five major countries. “We have import restrictions on Morocco, Russia and China – that’s a huge part of the marketplace,” he says. “We’re low [from fall and spring demand], and we can’t really import anything.
“All of this means it’s time for more farmers to unlock the NPK they already own,” said Mitch Eviston, Founder and CEO of Meristem Crop Performance in response. “Allocate $50 of your fertilizer spend for biologicals and planter-box treatments that help plants make the most of nutrients already in the field.”
EXCAVATOR™ AMS can release plant nutrition in time for the next crop, Eviston says, then REVLINE® HOPPER THROTTLE™ boosts plant health through the planter box. “Innovation with biologicals is a great alternative to synthetic fertilizer and can get you more bushels for less.”
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