In recent months, urea prices started to trend upward but fell as of the week ending April 7, 2017. Of the various types of nitrogen fertilizers available in the market, urea is one of customers’ top choices. To learn more, read Agricultural Fertilizer Industry: Your Comprehensive Overview. Let’s discuss how urea prices trended at the four locations below.
Granular urea prices
Last week, granular urea prices at the three locations in the above chart were broadly positive. Overall, they rose by an average of 3.2% week-over-week. Prices in the US Gulf NOLA (New Orleans) rose 4.8% week-over-week to $197 per short ton (or $179 per metric ton). Similarly, prices in the Middle East also rose last week by as much as 3.1% week-over-week to $200 per metric ton. Prices in the US Cornbelt region rose 1.8% week-over-week to $229 per short ton (or $208 per metric ton).
In contrast to the price movements in granular urea, prilled urea prices moved downward at the location in Yuzhny, Ukraine. Last week, prilled urea prices fell 2.8% week-over-week to $209 per metric ton.
Notably, prilled urea prices rose 3% year-over-year, while granular urea prices at the three locations discussed above are down by an average of 15.7% year-over-year. Downward price pressures on nitrogen prices continue to be a sticking point for companies (SOIL) such as CF Industries (CF), PotashCorp (POT), CVR Partners (UAN), and Terra Nitrogen (TNH).