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Fertilizer Prices Drop 30% Following Demand Destruction

Ammonia has seen some demand destruction as buyers balk at record prices

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Tracking the Fertilizer Supply Squeeze
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Fertilizer prices that had hit records are now plunging as buyers reel from sticker shock, but that doesn’t mean the market squeeze is over. 

The June spot price in Tampa, Florida for the nitrogen fertilizer ammonia settled at $1,000 per metric ton, a drop of 30% from May’s $1,425 per metric ton, according to Green Markets, a Bloomberg company. Even with the drop, however, prices for ammonia are still 87% higher than a year ago, and supply chain issues continue to wreak havoc on global markets.