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Russia’s escalation of the war could impact fertilizer prices
A market advisor says Russia’s escalation of its war against Ukraine this week could raise some production costs for US farmers.
Jody Lawrence with Stragetic Trading Advisors says the closure of the Grain Export Corridor in the Black Sea could impact fertilizer shipments.
“You have to begin to be concerned about how much Russian fertilizer is going to be available and at what price.”
Russia pulled out of the Black Sea Grain Initiative on Monday and Ukraine reported on Tuesday that Russia bombed the Odessa Port in the region.
He tells Brownfield while fertilizer prices have declined recently, they could increase, which means farmers may want to consider booking supplies for 2024.
“So many world events can throw a wrench into the price of fertilizers so quickly that if you get an opportunity to buy it at a profitable price where the 2024 futures are, then certainly take advantage of it.”
Lawrence says crude oil and natural gas prices have jumped leading to potential increases. Brownfield interviewed Lawrence at the Helena EVOLVE Innovation Expo in Memphis Tennessee.
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