Urea prices decline
Urea prices continued to decline last week at the locations discussed below. The weakness in urea prices continues to extend in comparison to the recent peak levels seen in February and March 2018.
Last week, urea prices in the NOLA (New Orleans) region of the US declined by as much as 3.4% week-over-week to $207 per metric ton from $214 per metric ton.
Urea prices also fell in Brazil, which has been one of the hot agricultural markets for fertilizer companies (MOO) such as CF Industries (CF), Mosaic (MOS), Nutrien (NTR), and Israel Chemicals (ICL). In Brazil, urea prices fell 1.6% week-over-week to $251 per metric ton from $255 per metric ton a week ago.
While the urea prices continued to decline last week at the two locations discussed above, the prices remained above levels observed in the corresponding quarter a year ago in April of 2017. In NOLA, the urea prices were higher by as much as 16% year-over-year from $179 per metric ton, while prices in Brazil were in the positive territory as well. Last week urea prices in Brazil were 8% higher compared to $233 per metric ton a year ago in 2017.
Below, we’ll discuss the prices of natural gas, which is a key input for nitrogen fertilizers.