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7/10/2024 End of Day Fertilizer Market Update

StonexHero

7/10/2024 End of Day Fertilizer Market Update

 
  • Josh Linville
  • Vice President - Fertilizer
  • StoneX Financial Inc. - FCM Division
  • [email protected]

Nothing new to share this afternoon as markets went into hiding.  Still on the watch out for further India news.

 

However, one point I forgot to touch on earlier.  Argus put out a good piece regarding the EU Fertilizers Europe proposing a 100 - 150 Euro's tariff on all Russian fertilizer imports to help halt funding Russia's war against Ukraine and also stops imports which punishes/hurts European producers.

On its own merit, if acted upon, this would be a game changing situation for global fertilizer trade patterns.  However, the bigger question is whether this would just be the EU...or will others follow?

Remember that during the last earnings call series, a statement was made by a certain U.S. based nitrogen manufacturer that purchasing Russian fertilizer is like funding their invasion of Ukraine.  Seem familiar?  If the EU takes these steps, I have little doubt calls will be made to meet this move...if those calls have not already been made.

In these matters, governments think that the tariffs hurt the country they are placed again.  If that country has no other destination options, they are right.  But if that country has other destination options, the people it ultimately hurts is their own farmers/retailers.

We have gone a few days since the last Black Swan event.  Could be the next?

 

  • Paper trades today
    • July Middle East Urea Paper - $345 ($2.50 HIGHER than settlement)
    • August Middle East Urea Paper - $345 ($5 HIGHER than settlement)
    • August CFR Brazil Urea Paper - $360 ($2.50 HIGHER than settlement)
    • September CFR Brazil Urea Paper - $360 / $360 / $360 ($4.50 HIGHER than settlement)
  • Physical trades today
    • None observed

 

Related tags: Fertilizers

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