May 26, 2022 - Economy & Business
Fertilizer prices suddenly declining amid 'demand destruction'
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.