The global economic slowdown continues to cheapen fertilizer prices as the growing season ends in the northern hemisphere. After falling $80 a ton last week, bids for urea are down another $70 this week in New Orleans, with buyers now seeking barges at $380. With bids for December out of the Black Sea even lower, prices could be headed down again next week unless the economic outlook stabilizes quickly.
Lack of credit for shippers and distributors caused by the financial crisis is one reason for the slowdown. Farmers also are hesitant to book supplies with crop prices in virtual freefall.
Little business in anhydrous is being done at the Gulf, where official prices are still at the $845 a ton level from August. International spot prices continue to soften slowly, but forward bids are down dramatically, about 40% off where the market last traded. That suggests prices at the farm gate could drop to around $700 to $800 a done in December/January, if suppliers are able to get product. To read Bryce Knorr's complete weekly fertilizer review, click HERE.
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