CHS Hedging Crop Nutrient Risk Management Consultant Chris Schwartz does not think the U.S. has seen the full ramifications of the fertilizer supply situation. “We’ve seen NOLA almost quadruple their prices for nitrogen. When it comes to phosphate, we were around $500 last year and this year, we’re at $680.” Market fundamentals are at work. “The cost of production is prohibiting the product from being produced. That’s not going away, these prices will likely go up.” Farmers may take advantage of pre-pay for fertilizer. Schwartz thinks only 20-to-30 percent of farmers have done that. The majority of farmers are likely trying to factor in what to do for next year.
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