Fertilizer Prices Ease as US Spring Demand Fades
Granular urea prices in New Orleans fell to $453.5 per short ton, the lowest since February, down 36% from mid-April highs. The decline is driven by a drop in seasonal demand after US farmers completed spring applications.
The fertilizer market is normalizing. New Orleans granular urea, the most widely used nitrogen fertilizer, dropped to $453.5 per short ton, the lowest since February 6th. This represents a 36% decline from the mid-April peak, when prices surged to the highest since 2022 amid the Strait of Hormuz shutdown that halted Middle East shipments.
According to the Fertilizer Institute, countries directly affected by the Iran War account for nearly half of global urea exports. The current decline is driven by a sharp drop in seasonal demand, as US farmers have largely finished spring applications, leaving the domestic market oversupplied.
By comparison, Egypt's benchmark urea price has also plunged to around $640.0 per short ton, the lowest since late February, though it remains significantly above US levels.
Source: The Kobeissi Letter