Fertilizer Impacts Expected to Continue

Geopolitical impacts on the global fertilizer supply is expected to continue. While some plants are cutting back due to high natural gas prices, StoneX Group Director of Fertilizer Josh Linville says others are restarting. “There are production plants talking about moving production rates even further back. Then again, we’ve also seen bright spots including announcements from a plant in Germany where we are taking steps to start. We’ll need government intervention to actually start that process and help offset the high prices of natural gas. It’s a bit of a mixed bag, but with the bad news comes good news.” Fertilizer price action is still very much in limbo. “One or two plants coming online won’t make a big difference. What we need is the entire date of Europe. If you don’t start up plants when it’s warm out, it gets very difficult in the cold winter months. If the plants aren’t online in the next four to six months, our chances of having these plants restart anytime before next spring diminishes quite a bit.”