War in the Middle East and the blockade of the Strait of Hormuz contributed to a rapid rise in nitrogen fertilizer values, but prices have dropped dramatically in recent weeks.
Some analysts were worried that the normal price reset after spring seeding would not occur this year, but a price drop has happened quickly:
There have been reports of international prices for urea, 46-0-0 moving lower, but what matters to farmers is the price locally.
Up until a few weeks ago, the price of urea at farm input suppliers in Western Canada was around $1,250 a tonne.
According to the Alberta Farm Input Price Survey, the lowest urea price of the past five years was just over $600 a tonne back in July of 2021. However, by April of 2022, world events had pushed urea prices to $1,350 a tonne.
While prices this spring were not quite that high, they were onerous as compared to the price of grain. So where are prices right now? What would you need to pay for urea for summer or fall delivery?
You could apply it this fall or store it for use next spring. Fertilizer prices are described as fluid, but I’ve seen price offerings for urea of well under $800 a tonne for summer or fall delivery.
That’s a relief considering the fears that prices might remain elevated.
