The price of anhydrous ammonia has shot up this year because of strong demand and limited supply.
“I've been in the industry for 20 years now, and I cannot remember it ever jumping this far this fast,” says John Linville, a fertilizer expert with StoneX.
A year ago anhydrous ammonia was selling for $500 US a tonne; now it’s at $900 and rising.
Farmer reports indicate anhydrous ammonia prices shot up nearly 60 per cent since fall in Iowa and are now at $655 dollars per ton, in Kansas it went from $389 in September to $650 now, in the Texas Panhandle from $325 a ton in January to $600 now and in west-central Missouri $475 in December $700 dollars per ton now.
“You have to go back at least half a decade to see values of where we're at today,” says Linville. “It's been a stark turnaround compared to where we were last summer.”
While prices push higher, Linville says price gouging isn’t at play. It all comes down to supply and demand.