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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.

Fertilizer prices suddenly declining amid 'demand destruction'

Fertilizer is facing "demand destruction," driving down prices after a huge spike when Russia invaded Ukraine.

Agriculture

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.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Fertilizer prices suddenly declining amid 'demand destruction'

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