Fertilizer Market Dashboard

Fertilizer prices were supported by higher crop prices in May, but price increases moderated in June. Nitrogen fertilizer prices are higher on natural gas availability affecting production in Egypt and limits still in place on exports out of China. Phosphates remain firm while potash is unchanged. In the next few weeks, upcoming import demand in major buyers Brazil and India will emerge.

Natural gas prices in the U.S. increased in June with above normal temperature forecasts suggesting higher energy demand for cooling. Prices in Europe were up on supply concerns and competition from other major LNG buyers, but higher than usual reserves kept price increases in check. Ammonia prices remain supported East of Suez by production outages, but West of Suez, prices are down due to soft demand.

Urea prices were up the most out of all markets tracked. In Egypt, urea production plants ran at reduced rates as the government manages energy use. Meanwhile, export certificates were suspended out of China where domestic prices remain high. Virtually no volumes from China have been exported since January. On the demand side, a tender was announced in India despite high stocks.

Phosphorus fertilizer prices were up slightly in June. Supply remains tight. Exports this year to date from China - which normally make up a third of phosphorus fertilizer exports - are down 30 percent compared to the same period last year. Major buyers like Brazil have been deferring purchases in hopes of lower phosphate prices but have since returned to market in attempts to make up the import lag ahead of September application.

Potash prices were largely unchanged in June, and the market was slow. Markets are waiting for clarity how the establishment of a new government in India, a major importer, could impact import demand. Import demand is strong in China and Brazil, though global supply has kept pace.