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Fertilizer trade spikes overnight as Russia invades Ukraine

The global fertilizer market is reacting to Russia’s invasion of Ukraine in a big way.

“It has been intense.”

Josh Linville, Director of Fertilizer for StoneX tells Brownfield Russia is a major exporter of nitrogen, potassium, and phosphorus fertilizers and because of that, “Out of the chutes we have seen global urea prices up over $200 a ton overnight. NOLA US prices are up $150-$200 per ton. The price of urea has jumped 32%-33% in less than 12 hours.”

He says global supply and demand has not changed as a result of the attack yet, so right now the market is operating on fear.

“When you start talking about cutting, depending not he product, anywhere from 10%-33% of the global export total, that is going to tighten thing sup very very quickly. When we talk that Russia could very well shut off those gas flows to Europe and shut off all that production, that is even bigger. It is a very scary time for the markets.”

Linville says global fertilizer prices and availability are going to change day to day depending on what is happening in the Black Sea Region.