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Last Week Was a Great Week for Fertilizer Prices

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Fertilizer prices rise

Last week, the major NPK (nitrogen, phosphorous, and potassium) fertilizer prices rose broadly week-over-week. Last week was also the first week in a long time that fertilizer prices were broadly positive in each of the regions. We’ll discuss each of the fertilizers in this series beginning with prices for urea last week.

Urea rises

Last week, urea prices at both locations in the above chart were broadly positive week-over-week. In Brazil, prices of granular urea rose by as much as 5.3% week-over-week to $279 per metric ton from $265 per metric ton. Similarly, in the NOLA (New Orleans) region of the US, urea prices rose 2.9% week-over-week to $210 per metric ton (or $248 per short ton) from $212 per metric ton (or $241 per short ton).

Urea prices remain strong and are supporting key nitrogen producers such as CF Industries (CF), which has one of the largest operations in the US. Companies such as Nutrien (NTR) (POT) and CVR Partners (UAN) also benefit from rising nitrogen prices due to their exposure to nitrogen fertilizer (MOO).

Year-over-year movements

With last week’s price increase, urea prices in Brazil have seen year-over-year gains of 34%, while urea prices in NOLA were up by 52% during the same period.

Next, we’ll look at natural gas, which is a key input to urea fertilizers and affects prices.

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