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Farmers Facing Higher Fertilizer Prices

With higher grain prices, farmers are facing higher fertilizer prices.
 
John Heard is as soil fertility specialist with Manitoba Agriculture.
 
"I've seen the grain prices increasing and when grain prices increase, farmer demand increases," he said. "As farmer demand increases, that tends to shorten the supply and increase prices. We've seen that with nitrogen because nitrogen is directly related to corn yields and other things in the States. The Americans also have put some duties on imported phosphorus from Morocco and Russia. That is tightening supply of phosphorus."
 
Heard notes a good portion of fertilizer was applied in the fall when prices were lower. He adds many farmers purchased in the fall and are storing over the winter.
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Iran War = “Trend is Your Friend” Short-Term BUT……

Video: Iran War = “Trend is Your Friend” Short-Term BUT……


Historically wars like the 2026 Iran war are bullish hard assets like grains, metals and energy! The funds are spooked and do not want to be short, but do they price in the news over time, similar to the Ukraine/Russian war that started on Feb. 24, 2022? A closure of the Strait of Hormuz is the key to the surge in crude oil, natural gas prices and fertilizer prices.  Grains are breaking out to new contract highs as a hedge against inflation.