Wednesday, March 17, 2021

Nitrogen prices rise

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.