Updated
Updated · High Plains Journal · Jul 1
Urea Falls to $669 a Ton as Iran War Premium Fades and China Lifts Exports
Updated
Updated · High Plains Journal · Jul 1

Urea Falls to $669 a Ton as Iran War Premium Fades and China Lifts Exports

1 articles · Updated · High Plains Journal · Jul 1

Summary

  • $669 per ton marked the latest weekly average for urea, the lowest since late February and about 20% to 25% below mid-April peaks that reached as high as $900.
  • Prices retreated as the New Orleans barge market returned to pre-Iran war levels, with the Strait of Hormuz disruption premium evaporating and China easing urea export restrictions.
  • The decline offers limited help to many Southern growers because most fertilizer was not booked before the spike, and about 95% of corn nitrogen has already been applied.
  • Rice farmers may still get partial relief on the remaining 20% to 30% of nitrogen applied midseason or later, while cotton benefits depend on whether producers locked in purchases earlier.
  • The earlier surge in urea and diesel lifted rice variable costs by roughly $120 per acre and may have pushed more acreage toward soybeans.

Insights

With prices stabilizing, what can farmers do to survive the next inevitable supply chain shock?
How is a single conflict's impact on fertilizer now threatening global food security and creating widespread hunger?