In the week ending October 19, urea prices in the NOLA (New Orleans) region of the US and in Brazil paused after a meteoric rise since the beginning of April. The pause impacts nitrogen players (MOO) including CF Industries (CF), CVR Partners (UAN), and Nutrien (NTR).
Granular urea prices in the NOLA region declined almost 1.6% week-over-week to $283 per metric ton from $288 per metric ton a week ago as of October 12. Urea prices in the region reached an all-time high since January 2016. Similarly, granular urea prices in Brazil declined as much as 1.5% week-over-week from $346 per metric ton to $341 per metric ton in the week ending October 19. Granular urea prices in Brazil also reached an all-time high at $346 per metric ton in the week ending October 12 in Brazil.
While last week’s weakness in urea prices in NOLA and Brazil might dampen the results for nitrogen fertilizer companies, prices remained strong YoY (year-over-year). In NOLA, urea prices gained as much as 27% year-over-year from $223 per metric ton in the same week in 2017. In Brazil, granular urea prices have risen 14% YoY from $300 per metric ton in the same week in 2017.
Next, we’ll discuss the natural gas price movements last week.