Fertilizer Prices Could See A Jump

Lower yields from this year's harvest across the prairies, means less money in the hands of producers, even with prices where they are right now.

In the meantime, a report by Markets Farm suggests fertilizer prices could be heading higher over the next several months. It blames what it calls a confluence of a number of events, leading to a shortage.

Chris Lawson of the New York based CRU group, says Hurricane Ida shuttered nitrogen plants along the US Gulf Coast this summer and a rise in European natural gas prices this month, forced some European companies to shut down production at their nitrogen plants. Lawson calls it a perfect storm of events leading to higher prices for urea, phosphates and potash. As a result, a lot of producers are taking a wait and see approach. Some analysts say fertilizer costs may come down in the off season, but waiting too long to make a purchase for next spring, could be risky.