Pinched ammonia supplies from Trinidad add to US farmer pain ahead of elections
XLB•US ammonia prices have climbed about 45% since late June to around $875 per short ton, while imports from Trinidad and Tobago have fallen about 34% this year. Higher fertilizer costs are adding to financial pressure on US farmers ahead of the midterm elections.
1. Prices climb
Midwest ammonia prices rose from about $600 per short ton in late June to around $800 in early October, then climbed to around $875, analyst Justin Ratcliff said. Ammonia is used to make nitrogen fertilizer, a critical input for corn and other crops.
2. Trinidad supply tightens
Trinidad and Tobago, the second-largest US ammonia supplier after Canada, has faced declining natural gas production. US ammonia imports from the island fell about 34% this year, and Nutrien indefinitely shut down its nitrogen operations there last month because of continuing gas supply problems.
3. Farm costs rise
The supply decline is adding pressure to farmers already facing high diesel costs and weak Chinese demand for US grains and meat. Farm groups in Iowa, Ohio and Texas warned President Donald Trump that rising fertilizer costs were eroding the effect of his $8 billion farmer support program announced last month.
