Editor's Note: Farm Futures continues its ongoing series taking a more in-depth look at key input prices for the 2008 crop year. While higher crop prices have been good news on the farm, there's a bad-news scenario building for fertilizer costs. We continue the coverage today with information on international prices.
Anhydrous ammonia prices out of the Black Sea surged last week, with the international benchmark up more than $47. Anhydrous was quoted at $340 per short ton, an all-time high that represents increase of almost 50% since prices began moving higher in early November.
While farmers report quotes from suppliers — if product is available — are routinely over $600 per ton, the quoted price out of the U.S. Gulf was unchanged last week at around $326 per ton.
Strong international demand for fertilizers of all types sent prices soaring this fall. Heavy buying from China and India fueled by record or near-record crop prices, along with lack of domestic production in the U.S., is blamed for the spike, according to industry sources.
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