China Yuan Devaluation May Roil Nitrogen-Fertilizer Markets
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China’s devaluation of the yuan may stir up global fertilizer markets by undermining prices for nitrogen-based crop nutrients, Bloomberg Intelligence analysts Christopher Perrella and Jason Miner said.
A weaker yuan boosts local currency cash generation for China exporters of dollar-denominated commodities, potentially reducing financial pressure on Chinese producers of urea who last year accounted for 30 percent of global trade in the form of nitrogen fertilizer, Perrella and Miner said Tuesday.