Cheapest Nitrogen Fertilizer in Seven Years Weighs on CF: Chart

Good news for cash-strapped farmers: Prices for nitrogen fertilizer declined this week to the lowest since December 2008. That’s also souring investors’ view of CF Industries Holdings Inc., the largest U.S. producer, which fell as much as 14 percent on Wednesday.

Urea, one of the most commonly traded forms of the fertilizer, has dropped to almost $200 a ton in the Gulf of Mexico, and it’s hard to predict when prices will bottom, CLSA Americas analysts led by Mark Connelly said in a Jan. 15 note. Not only do prices keep sliding for oil, gas and coal -- the raw materials used to make urea -- but a weakening yuan is also lowering the break-even point for Chinese producers, allowing global urea prices to fall even further, Connelly said.

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