Here's a puzzle: How is it that fertilizer prices are so stubbornly high while the production cost has plunged?
The answer lies in the Corn Belt—and it will boost fertilizer equities for the foreseeable future.
Anhydrous ammonia, a nitrogen-based plant food, now sells for nearly $700 a ton. That's off from the highs of $800 late last year. But the biggest variable cost in making fertilizer, natural gas, has seen its price collapse. It's off over half from $4.50 a million British thermal units in mid-2011. Natural gas for May delivery closed at $1.927 on the New York Mercantile Exchange Friday, down 2.7% for the week. See the original post here.
Photo by Etienne Girardet on Unsplash
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