Fertilizer Market Update: Tariffs, Supply, and Price Uncertainty
Mar 10, 2025
Tariffs have been a major concern in the fertilizer industry since they were enacted on March 4th. The exact impact of these tariffs is still uncertain. Fortunately, we have had ample time to prepare and secure as many tons of fertilizer as possible to minimize potential supply disruptions or increased costs for this spring season.
Nitrogen is another big issue we are keeping an eye on. The U.S. supply of UAN is very tight as we approach the late winter and early spring season. Production disruptions and high export levels have contributed to this situation. Similar to potash, we have taken all possible measures to stay ahead of this challenge. We have filled all our storage facilities and maximized on-farm storage, and we have secured contracts for additional tons over the next few months.
We are closely monitoring the situation regarding urea and have several questions to consider: Are there enough tons available in the U.S.? If not, how might the price increase? Conversely, could we have attracted too many tons too late? If so, how might the prices decrease?
Much remains to be determined as we move into spring, influenced by factors such as how much corn will be planted and whether growers will switch from UAN to urea. These considerations will significantly influence the urea market, which has been experiencing supply levels below historical averages for several months.
If you have any questions or need assistance navigating fertilizer market challenges, reach out to MKC. We're here to help!
Article provided by Troy Walker, Director of Retail Fertilizer
Nitrogen is another big issue we are keeping an eye on. The U.S. supply of UAN is very tight as we approach the late winter and early spring season. Production disruptions and high export levels have contributed to this situation. Similar to potash, we have taken all possible measures to stay ahead of this challenge. We have filled all our storage facilities and maximized on-farm storage, and we have secured contracts for additional tons over the next few months.
We are closely monitoring the situation regarding urea and have several questions to consider: Are there enough tons available in the U.S.? If not, how might the price increase? Conversely, could we have attracted too many tons too late? If so, how might the prices decrease?
Much remains to be determined as we move into spring, influenced by factors such as how much corn will be planted and whether growers will switch from UAN to urea. These considerations will significantly influence the urea market, which has been experiencing supply levels below historical averages for several months.
If you have any questions or need assistance navigating fertilizer market challenges, reach out to MKC. We're here to help!
Article provided by Troy Walker, Director of Retail Fertilizer