Urea prices
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Urea prices
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Re: Urea prices
#2LNG -> urea (fertilizer) -> food
About half of all fertilizer is artificially created using fossil fuels.
There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere.
Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
Re: Urea prices
#3Incredible how Trump ran on a "no wars" and "lower prices" platform. And that people actually believed it.
Re: Urea prices
#4LNG -> urea (fertilizer) -> food About half of all fertilizer is artificially created using fossil fuels. There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere. Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
Haber-Bosch process, for the curious.
Re: Urea prices
#5Up 30% is not “nearly doubles”.
Re: Urea prices
#6LNG -> urea (fertilizer) -> food About half of all fertilizer is artificially created using fossil fuels. There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere. Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
[deleted]
Re: Urea prices
#7LNG -> urea (fertilizer) -> food About half of all fertilizer is artificially created using fossil fuels. There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere. Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
I thought the US primarily got it's LNG supply from fracking. Is this incorrect?
Re: Urea prices
#8Up 30% is not “nearly doubles”.
Where are you pulling this number from? I see a clear change from 350 to 585
Re: Urea prices
#9LNG -> urea (fertilizer) -> food About half of all fertilizer is artificially created using fossil fuels. There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere. Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
I thought the US primarily got it's LNG supply from fracking. Is this incorrect?
US domestic fossil gas consumers compete with global LNG buyers willing to pay premiums for LNG exported from the US.
https://www.reuters.com/markets/tracking-lng-flows-key-globa...
https://finance.yahoo.com/news/u-natural-gas-prices-rise-130...
Re: Urea prices
#10LNG -> urea (fertilizer) -> food About half of all fertilizer is artificially created using fossil fuels. There is no undoing of this price shock because the planting and growing season has already arrived in the Northern Hemisphere. Expect grains to become more expensive and downstream food products like milk and cheese to increase a lot.
American Urea production is orthogonal to LNG production in the Gulf - most American NatGas is sourced domestically, from Canada, or the Carribean [0].
This will be a shock, but mostly in Asia where LNG is dependent on Gulf sourcing, but most of the larger Asian countries began investing in building alternative supply chains and the financial buffer to ride out these kinds of shocks.
This isn't the first system shock to have happened in the past 5 years - the Russian Invasion of Ukraine in 2022 led to a similar shock, and larger countries began building redundancies as a result.
You will see this in the graph linked above as well - urea prices are well below their 2022-23 peaks.
Additionally, the North American farming uses significantly less urea than other countries [1]
[0] - https://www.eia.gov/dnav/ng/ng_move_impc_s1_a.htm
[1] - https://ammoniaenergy.org/articles/decarbonizing-urea-produc...