DTN writer Russ Quinn reported yesterday that “Retail Fertilizer Prices Continue to Rise Higher and Higheraccording to locations tracked by DTN for the first week of April 2022. All Fertilizers have been upper again compared to last month.
“Opening the way higher was urea. Nitrogen fertilizer was 14% more expensive compared to last month and had an average price of $1,031/ton, which is a all-time high prices in the DTN dataset.
“DPA been 13% morer compared the previous month with an average price of $1,040/ton, one all-time high the price. MENU been 11% more expensive one-month retrospective with an average price of $1,056/tonne.”
Quinn noted that “Potash was also up considerably. DTN denotes significant movement as anything of 5% or more. The potash was 6% more expensive compared to last month and had an average price of $875/tonne.
“The remaining four fertilizers were slightly higher compared to the previous month. 10-34-0 had an average price of $901/tonne, anhydrous $1,534/ton (all-time high), UAN28 $629/ton (all-time high) and UAN32 $729/ton (all-time high).”
Earlier this week, Associated Press writers Geoffrey Kaviti, Chinedu Asadu and Paul Wiseman reported that, “Higher fertilizer prices do it the world’s most expensive food supply and less abundantas farmers skimp on nutrients for their crops and achieve lower yields. While the ripples will be felt by grocery shoppers in rich countries, the pressure on food supplies will hit families in poorer countries harder. It could hardly happen to a worst time: The Food and Agriculture Organization of the United Nations said last week that its global food price index in March had reached its highest level since its launch in 1990.
Meanwhile, Rachel Siegel reported on the front page of Wednesday’s Washington Post that “the U.S. inflation surge accelerated in March as prices are up 8.5% from a year ago. It was the largest annual increase since December 1981, as energy prices soared due to Russia’s war in Ukraine.
“Inflation data, published tuesday by the Bureau of Labor Statistics, showed that prices rose 1.2% in March compared to February. Price increases for gasoline, housing and food have been major contributors to inflation, underscoring how inevitable these cost increases have become,” the Post article states.
Siegel explained that “the food index increased by 1% in March compared to February. He is up 8.8% over the previous 12 monthsbiggest increase since may 1981. Few categories were left intact. breakfast cereals been up to 2.4 % from February to March. Rice prices pink 3.2 percent, ground beef increased by 2.1 percent and eggs increased by 1.9 percent. Milk increased by 1.3 percent, potatoes 3.2 percent, and canned fruits and vegetables clad on 3.8 percent.”
Wall Street Journal writer Gwynn Guilford reported on the front page of Wednesday’s newspaper that, “Food inflation also increases consumers’ grocery bills.
Meat prices rose 14.8% in March from a year ago, with hot dogs and deli meats rising at the fastest pace since 1979. Breakfast cereal prices soared 9.2% over the past year, the largest increase since 1989. The Ukrainian crisis is likely to add more pressure in the coming months due to disruptions to global wheat and fertilizer production.
And Bloomberg writer Olivia Rockeman reported yesterday that “Food cost for final demand rose the most in March in 10 monthspointing to higher grocery bills for Americans in the coming months, even as gasoline prices fall.
“The Wednesday’s producer price index report watch food prices increased by 2.4% compared to the previous month, the biggest increase since May. The jump was driven by larger increases in the prices of grains, vegetables, cooking oils and pork – suggesting the closely watched Consumer Price Index will soon reflect such advances.
More broadly on food prices, Bloomberg writers Megan Durisin, Abdel Latif Wahba and Salma El Wardany reported yesterday that “Egypt’s latest purchase, the leading buyer of wheat, laid bare the exorbitant costs faced by importers as war in Ukraine disrupts global grain trade.
“The country is stepping up efforts to ensure it has enough to feed its citizens, many of whom depend on a bread subsidy program. In a bidding on Wednesdayhe attracted offers from six companies, on half the normal number, said traders who asked not to be identified. The public buyer finally recovered 350,000 tonsincluding French wheat, a rare Bulgarian cargo and one of Russia.
“It was expensive: The amount reserved was on average almost $490 one ton after accounting for freight. It is up to 44% of the rate paid in mid February, just before the war broke out, and the most for at least six years. The large volume bought, even at high prices, highlights the urgency for Egypt to build up reserves, said Matt Ammermann, head of commodity risk at StoneX.
And today, Bloomberg writers Jasmine Ng and Megan Durisin reported that “corn extended its gains towards $8 a bushel as war in Ukraine threatens the country’s ability to ship and sow crops, while cold weather slows early planting in the United States.
“Chicago futures are up for a third straight session, heading for the longest rally since the start of the Russian invasion. The country is repositioning its forces for further attacks in eastern and southern Ukraine. The conflict has hampered grain trade out of the Black Sea region and could prevent Ukraine from ship about half the corn it was expected to sell out this season, before the war broke out.