U.S. ammonia prices near $875 a short ton as Trinidad supply falls

U.S. fertilizer prices are surging as falling ammonia exports from Trinidad and Tobago tighten a global market, Reuters reported on November 2.

Midwest ammonia prices rose more than 30% between late June and early October, from about $600 to around $800 per short ton. They have since climbed to around $875, according to CRU analyst Justin Ratcliff.

Ammonia imports from Trinidad fell about 34% this year, according to The Fertilizer Institute. Nutrien shut its Trinidad nitrogen operations indefinitely in October because of gas shortages. Normally other suppliers fill that gap, but this year they have not.

Farm groups have warned the president that rising fertilizer costs are eroding an $8 billion diesel support program announced last month, as demand peaks in the autumn application season.

Analysts expect Trinidad’s constraints to worsen after Nutrien’s closure. Much of the U.S. anhydrous ammonia supply usually moves from Trinidad by barge up the river system to farmers, so losing that supply ripples through the chain, according to StoneX analyst Josh Linville.

Source: Reuters via News & Observer