May 26, 2022 - Economy

Fertilizer prices suddenly declining amid 'demand destruction'

Green Markets North America fertilizer price index
Data: Green Markets; Chart: Axios Visuals

Fertilizer prices are coming back down to earth.

Why it matters: Fertilizer prices directly influence the price of food as farmers pass along increased commodity costs.

Details: "Demand destruction" and the declining cost of ammonia production have lead to a sharp reversal in prices, Bloomberg reports.

  • Flashback: The price of nitrogen, phosphorus and potassium (NPK) soared when Russia invaded Ukraine amid fears of trade disruptions and a stoppage in Chinese exports.

The bottom line: A North American fertilizer price index tracked by Green Markets is down 21% from its peak in late March but remains elevated compared to pre-war levels.

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