Posted by Machnegative on February 20, 2022 at 14:59:14 from (64.57.62.38):
In Reply to: production prices posted by gbs on February 20, 2022 at 12:25:15:
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Well said. This has been brewing for a couple of years globally. Like stated above, lots of contributing factors. Fertilizer manufacturers watch grain prices and want a set piece of the pie. When you can sell high price grain a couple years out, not much to drive fertilizer prices down. NG prices high affects most N sources since they are all built off ammonia, (the first building block of UAN, urea,AMS, MAP,DAP, etc) which is made using NG and air. (Very simplified chemistry). Sulfur products (ammonium sulfate AMS, elemental sulfur, even to an extent MAP, DAP, and 10-34-0) use byproducts of the oil and auto industry, both that are not operating at full capacity. Also remember, your local CoOp or dealer has to set prices with an eye towards replacement cost, not just the cost of inventory on hand. They have to capture margin when prices go up, knowing they will likely sell at a loss when the market dips or risk losing business from being too high. Dont even want to look at crop protection supplies and costs this year. It will be a wild one for sure.
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