{"id":117139,"date":"2021-06-25T03:39:07","date_gmt":"2021-06-25T03:39:07","guid":{"rendered":"https:\/\/fin2me.com\/?p=117139"},"modified":"2021-06-25T03:39:07","modified_gmt":"2021-06-25T03:39:07","slug":"worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/","title":{"rendered":"Worldwide commodities boom drives fertiliser prices to 10-year highs"},"content":{"rendered":"

The world-wide commodities boom has driven world fertiliser prices to 10-year highs.<\/p>\n

Global food prices have recorded their biggest annual rise in a decade, driven in part by China’s soaring appetite for grain and soyabeans<\/span> and a severe drought in Brazil, which has put fertiliser in hot demand.<\/span><\/p>\n

The UN’s Food and Agriculture Organisation (FAO) said global food prices rose last month at their fastest monthly rate in more than a decade, even as world cereal production was on course to reach a new record high.<\/p>\n

The FAO’s Food Price Index averaged 127.1 points in May, 4.8 per cent higher than in April and 39.7 per cent higher than in May 2020.<\/p>\n

A surge in the international prices of vegetable oils, sugar and cereals led the increase in the index, which tracks monthly changes in the international prices of commonly-traded food commodities, to its highest value since September 2011 and only 7.6 per cent below its all-time peak in nominal terms, the FAO said in a report.<\/p>\n

Mike Whitty, general manager supply chain for the farmer-owned fertiliser co-op, Ravensdown, said fertiliser prices had been unusually strong on the back of higher food demand.<\/p>\n

“What we have seen is significant demand for food and you require nutrient to produce food.<\/p>\n

“That’s come off a pretty depressed market over the last couple of years, both economically and climatically,” he said.<\/p>\n

The commodities boom had come at a time when inventories for grains and other commodities were low, coupled with significant demand coming from North America, Brazil and India.<\/p>\n

“It’s on the back of very good food prices for commodities, such as grains,” Whitty said.<\/p>\n

“Countries are looking to build up their inventory of food, so what we are seeing is a major squeeze in the market since early this year.<\/p>\n

“Right around the world farmers are looking to meet that demand and so nutrient is key to providing the food that everybody wants.”<\/p>\n

The price of DAP – or di-ammonium phosphate – a widely used fertiliser that is manufactured overseas and imported into New Zealand – has hit a 10-year high of nearly $1000 a tonne – up from $800\/tonne a year ago.<\/p>\n

<\/p>\n

“It is quite consistent across all of the major products – potash DAP, urea, sulphur – they are all at 10-year highs now.<\/p>\n

“We look at these things on a daily basis and the sheer pace of the increase has been somewhat surprising,” Whitty said.<\/p>\n

In addition, freight rates were firming significantly as the world’s supply chain struggled to normalise in the wake of Covid-19.<\/p>\n

Rates for containerised freight are up by 300 to 400 per cent and the same goes for bulk cargo after a period of low demand over the two years prior to Covid-19.<\/p>\n

“With economies starting to come out of Covid being supported by governments, the demand has spiked significantly.<\/p>\n

“We are seeing freight rates for bulk vessel on a hirage basis three times where they were last year.”<\/p>\n

Urea has gone from $600 a tonne to $800\/tonne.<\/p>\n

UK-based commodities research house ICIS said international fertiliser markets are experiencing an unseasonal boost in prices and demand, with some prices hitting historical highs.<\/p>\n

“The major question now for producers, traders, co-operatives and farmers, is if current levels will be sustained and what availability will look like moving through the second half of 2021,” ICIS said in a report.<\/p>\n

“While some markets are exclusively impacted by production cuts, rising feedstock costs, sanction cuts, rising freight rates, a major driver giving the market confidence is record crop prices,” it said.<\/p>\n

The unabated strength of ammonia, which has also been driving the price up for urea and nitrates, looked to remain a challenging market, where, on almost a daily basis, production problems are announced, it said.<\/p>\n

Higher commodities prices have prompted talk that the world might be on the verge of a commodities supercycle.<\/p>\n

Early this year, Goldman Sachs said: “Looking at the 2020s, we believe that similar structural forces to those which drove commodities in the 2000s could be at play.”<\/p>\n

Goldman’s supercycle view is based on how the world will recover from the Covid-19 crisis with an emphasis on a green industrial revolution and a policy focus on social need.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The world-wide commodities boom has driven world fertiliser prices to 10-year highs. Global food prices have recorded their biggest annual rise in a decade, driven […]<\/p>\n","protected":false},"author":3,"featured_media":117138,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nWorldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Worldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me\" \/>\n<meta property=\"og:description\" content=\"The world-wide commodities boom has driven world fertiliser prices to 10-year highs. Global food prices have recorded their biggest annual rise in a decade, driven [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-25T03:39:07+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/06\/Worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/\",\"url\":\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/\",\"name\":\"Worldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me\",\"isPartOf\":{\"@id\":\"https:\/\/fin2me.com\/#website\"},\"datePublished\":\"2021-06-25T03:39:07+00:00\",\"dateModified\":\"2021-06-25T03:39:07+00:00\",\"author\":{\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\"},\"breadcrumb\":{\"@id\":\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fin2me.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/fin2me.com\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Worldwide commodities boom drives fertiliser prices to 10-year highs\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fin2me.com\/#website\",\"url\":\"https:\/\/fin2me.com\/\",\"name\":\"Fin2me\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fin2me.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a\",\"name\":\"Mark\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fin2me.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g\",\"caption\":\"Mark\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Worldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/","og_locale":"en_US","og_type":"article","og_title":"Worldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me","og_description":"The world-wide commodities boom has driven world fertiliser prices to 10-year highs. Global food prices have recorded their biggest annual rise in a decade, driven [...]","og_url":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/","og_site_name":"Fin2me","article_published_time":"2021-06-25T03:39:07+00:00","author":"Mark","twitter_card":"summary_large_image","twitter_image":"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/06\/Worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs.jpg","twitter_misc":{"Written by":"Mark","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/","url":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/","name":"Worldwide commodities boom drives fertiliser prices to 10-year highs - Fin2me","isPartOf":{"@id":"https:\/\/fin2me.com\/#website"},"datePublished":"2021-06-25T03:39:07+00:00","dateModified":"2021-06-25T03:39:07+00:00","author":{"@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a"},"breadcrumb":{"@id":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/fin2me.com\/business\/worldwide-commodities-boom-drives-fertiliser-prices-to-10-year-highs\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fin2me.com\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/fin2me.com\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Worldwide commodities boom drives fertiliser prices to 10-year highs"}]},{"@type":"WebSite","@id":"https:\/\/fin2me.com\/#website","url":"https:\/\/fin2me.com\/","name":"Fin2me","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fin2me.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/fin2me.com\/#\/schema\/person\/ad0e9920e03d3b41c7ad02a18375d76a","name":"Mark","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fin2me.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/39b72719fb75a2d3c7d7695026648602?s=96&d=mm&r=g","caption":"Mark"}}]}},"_links":{"self":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/117139"}],"collection":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/comments?post=117139"}],"version-history":[{"count":0,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/posts\/117139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media\/117138"}],"wp:attachment":[{"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/media?parent=117139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/categories?post=117139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fin2me.com\/wp-json\/wp\/v2\/tags?post=117139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}