Updated
Updated · Bloomberg · Jun 9
Urea Plunges 30% as Crop Markets Erase Iran War Risk Premium
Updated
Updated · Bloomberg · Jun 9

Urea Plunges 30% as Crop Markets Erase Iran War Risk Premium

2 articles · Updated · Bloomberg · Jun 9

Summary

  • Urea prices have fallen more than 30% since mid-April, fully reversing the conflict-driven surge as fears of prolonged Iran war supply disruptions recede.
  • That drop is pulling agricultural commodities lower, easing what had been one of the biggest threats to renewed food inflation.
  • The Bloomberg Agriculture Spot Index, which tracks 10 heavily traded crops, fell to its lowest level since March 5 on Friday.
  • Corn, wheat and other farm products are sliding with fertilizer costs, signaling that the war premium has largely washed out across crop markets.

Insights

The Iran war premium is gone, but is a fragile truce preventing another global food crisis?
Wholesale crop prices are plummeting, so when will consumers finally feel relief on their grocery bills?
With crop prices plunging after the conflict, why do millions still face a worsening hunger crisis?