In the week ending November 2, urea prices continued to fall—a continuation of the trend we observed in the past few weeks. CF Industries (CF), which reported its third-quarter earnings last week, provided an update on nitrogen prices in its earnings update. Before we discuss that, let’s look at how nitrogen prices performed last week.
Urea prices in both of the above locations declined week-over-week. In the NOLA (New Orleans) region of the US, the urea prices declined 2% week-over-week to $267 per metric ton from $272 per metric ton a week ago. In Brazil, the urea prices declined 1.5% to $333 per metric ton from $338 per metric ton a week ago.
Year-over-year, urea prices in both of the locations remained higher. In NOLA, the urea prices rose 18.6% YoY (year-over-year). In Brazil, the prices increased 8.8% YoY.
CF Industries, in its earnings, stated that the global energy prices in the regions outside North America were unfavorable, which drove the prices for nitrogen fertilizers like urea higher. At the same time, the natural gas prices in North America remained favorable for producers (MOO) like CF Industries, Nutrien (NTR), CVR Partners (UAN), and Mosaic (MOS).
Next, we’ll discuss natural gas price movements.