Geopolitical tensions have led to volatility in the fertilizer markets over the last year. While the market impact has cooled, analysts tell aginfo.net you should not let your guard down anytime soon.
“Essentially, over the last two years, you’ve seen the grower, book fertilizer and maybe not sell enough corn, and I’m just talking, relatively speaking, not everyone, but a lot of folks were in that camp. Got to be cautious here this year. I know that the markets have been tough, but to make the assumption that we’re not going to see more downside, it’s probably not a wise thing to do. So we’ve been telling growers that if nothing else as you’re buying this fertilizer, set a floor in place,” said Matt Bennett.
Tensions in the Middle East are also causing concern. Earlier this month, analysts with StoneX warned the area is important for nitrogen, and supplies could be tighter than previously thought.
