It’s no secret that COVID-19 has had an impact on the cost of raw materials and energy prices.

Due to the plummeting cost of raw materials, growing production capacity, and mediocre demand, there have been pressures on the global price indicators of nitrogen, phosphate, and potash to fall either to or near ten-year lows.

According to Rabobank’s Semi-Annual Global Fertilizer Outlook, decreasing energy prices have been one of the biggest impacts of COVID-19 on the fertilizer complex.

Reduced mobility and restrictions have forced prices of natural gas and coal down 46 per cent, and 11 per cent, respectively. Both of these raw materials are critical to the production of urea and processed phosphate.

Late in the first quarter, uncertainty created a lift across most international price benchmarks. Matheus Almeida, senior analyst of farm inputs, says this price trend is expected to stick around.

“We expect that there is little upside for prices over the next six months across the nutrient complex. With relatively cheap inputs, utilization remaining at low levels, and our outlook for commodity prices also staying low, we expect this low price environment will continue for at least the next six months,” Almeida explains.

A COVID-19-related interruption to global production and/or supply chains remains the most prominent risk for fertilizer prices over the next six months, and at the farmgate, this may lead to sharp, short-term price rises, if shortages arise.

Leave a Reply


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Privacy Preference Center


Necessary cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.

gdpr, __cfduid, PHPSESSID, wordpress_test_cookie, woocommerce_items_in_cart, woocommerce_cart_hash, wp_woocommerce_session, wordpress_logged_in, wordpress_sec, wp-settings, wp-settings-time, __cf_mob_redir, wordpress_cache, realag


Measuring interactions with the ads on the domain.



These are used to track user interaction and detect potential problems. These help us improve our services by providing analytical data on how users use this site.



Preference cookies enable the website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.

chartdefaults, comment_author, comment_author_email, comment_author_url
JSESSIONID, _os_session,anonymous_votes,csrf-param,csrf-token,user,user-id,user-platform,intercom-session,intercom-lou,intercom-session
personalization_id, tfw_exp