Teucrium Soybean Fund Inflows Surge as Urea Prices Jump $80/Ton
Investors poured into the Teucrium Soybean Fund as crude-driven farm costs rose and biofuel demand underpinned soybean oil prices, driving Teucrium Corn and Wheat volumes to 2022 highs on March 6. Urea prices climbed $80 per ton after Qatar and Indian plants cut output, tightening fertilizer supplies ahead of planting.
1. Farm Input Costs Rise
Crude oil price spikes have boosted fuel, natural gas for fertilizer and diesel for logistics, raising farm operating costs across row crops and creating a new price floor that directly impacts soybean production expenses.
2. Biofuel Demand Underpins Prices
Ethanol production consumes about 37% to 38% of U.S. corn supply while renewable diesel demand uses soybean oil, establishing a consistent demand floor tied to energy policy that supports both corn and soybean markets.
3. Fertilizer Supply Disruptions
Shutdowns at the world’s largest urea plant in Qatar and reduced output at three Indian facilities have driven urea prices up by $80 per ton, tightening nitrogen fertilizer availability just before the Northern Hemisphere planting season.
4. Soybean ETF Investor Response
Faced with rising farm costs and tightening fertilizer supply, investors have shifted capital into the Teucrium Soybean Fund to gain exposure to soybean markets insulated by energy-backed demand and constrained crop inputs.