In the week ending October 26, overall urea prices in the locations discussed below were broadly negative, indicating a slump in the urea uptake in those markets. With fertilizers, there is seasonality in sales for companies (XLB) such as CF Industries (CF), Mosaic (MOS), Nutrien (NTR), and Intrepid Potash (IPI). Therefore, a drop in prices this time of the year isn’t very surprising.
The above chart shows that urea prices reached a peak last week in both Brazil and NOLA (New Orleans). Between October 19 and October 26, urea prices in NOLA declined by 93 basis points week-over-week to $426 per metric ton. Similarly, urea prices in Brazil declined by 22 basis points week-over-week to $456 per metric ton from $457 per metric ton.
Last week, urea prices were up by as much as 26% from $363 per metric ton, while prices in NOLA rose by as much as 30.7% year-over-year from $326 per metric ton last week. Urea prices have risen substantially in the last year.
Next, we’ll discuss natural gas prices, which are an important consideration for urea fertilizers.