Fertilizer just got even more expensive.
Canpotex has agreed to supply China with potash fertilizer shipments at $590 a metric ton through December, which is more than double the price from a year ago and the highest since at least 2013, according to data from Bloomberg’s Green Markets released Tuesday. The price is at the top end of expectations, Scotiabank analyst Ben Isaacson said Tuesday in a note.
The joint venture that markets offshore potash sales for Nutrien Ltd. and Mosaic Co. also just settled a contract to supply India for the same price. Potash is used on major commodity crops and to grow produce, among other uses.
Fertilizer costs have skyrocketed as high natural gas prices, a key input, forced some European plants to halt or curtail production. Adding to concerns, the U.S. imposed sanctions on a major potash supplier in Belarus in December that will affect global supplies. It all points to rising costs for farmers, who are already curbing their fertilizer use, which could lead to lower crop yields and further boost food inflation.
Nutrien Ltd. has increased potash prices across North America by $25, Green Markets said Tuesday.
