Saturday, March 5, 2022

Fertilizer prices to rise even more

Already-high fertilizer prices are likely to rise sharply because Russia, the world’s second-largest supplier, can’t export any more.

That’s because shipping companies won’t carry Russian goods, one of the results of economic sanctions against Russia for its invasion of the Ukraine.

Russia's Industry and Trade Ministry issued a recommendation to its fertilizer companies to suspend shipments until they can guarantee carriers will deliver their goods.

A Russian fertilizer source said they don’t have any containers and ships are not coming in.

Russia is the second-largest producer of ammonia, urea, and potash and the fifth largest producer of processed phosphates. Russia accounts for 23 per cent of ammonia, 14 per cent of urea, 21 per cent of potash, and 10 per cent of processed phosphate exports.

Buyers are turning to Nutrien of Saskatoon because it’s the world’s largest supplier of potash and the world’s largest retailer of ferilizers since it bought Agrium.

Shares of Nutrien have risen sharply this month.