A price index for nitrogen ammonia fertilizer in Tampa rose 43 percent to $ 1,625 per metric ton on Friday, a record for the 29-year index. Production shutdowns and tight global supply are driving the jump, according to a Bloomberg Intelligence note. The war is increasing the cost of gas, the main input for most nitrogen fertilizers, forcing some producers in Europe to cut production. Markets are also worried that potential sanctions on Russia, a major shipper of low-cost crops, could disrupt world trade. The country accounted for nearly one-fifth of fertilizer exports in 2021, according to Trade Data Monitor and Bloomberg’s Green Markets Russia has urged domestic fertilizer producers to cut exports, further fueling fears of shortages. At the same time, prices for basic crops such as wheat, corn and soybeans are skyrocketing, with war in one of the world’s bread baskets threatening to push millions more on hunger. Rising costs for agricultural inputs such as fertilizers could further push food prices soaring.
