Fall Fertilizer Outlook
The fertilizer market is a global one and we’ve especially seen that here in 2022. Where are we now? Corey Rosenbusch, President and CEO of The Fertilizer Institute…
“I think we will see a very strong fall application, especially when you think about Europe, what’s going on with natural gases, and further potential disruption with ammonia production that might happen in the spring. We’ve seen about 70% of all ammonia production in Europe shut down in the course of the last month.”
Natural gas is a building block for ammonia and he says it’s just been too expensive.
“In Europe, the price of natural gas rose to above $100 per MMBTU last month and that is no longer at a sustainable level to produce ammonia. As a comparison, even U.S. natural gas climbed but we only got to $8 per MMBTU, so that’s just the drastic difference. And of course we all know why. It’s because of Russia and the fact that 60% of the ammonia produced in Europe is produced using Russian natural gas.”
His anticipation is that home heating is going to take priority for that natural gas this winter and it’ll have the ability to stir up the market.