Posted on 10/08/2021 2:59:55 AM PDT by gattaca
China is banning the export of phosphate, a major component of commercial fertilizer, through 2022.
“Fertilizer prices have increased dramatically in recent years, and the news coming from China will more than likely help this trend continue,” said Theresa Sisung, field crops specialist for the Michigan Farm Bureau. “Farmers should talk to their retailers sooner rather than later to discuss their options for purchasing fertilizer for their 2022 crop needs.”
According to John Ezinga, vice president of agronomy at Michigan Agricultural Commodities Inc., the move will adversely affect prices.
“Growers are going to feel it,” Ezinga said. “Look at your ratios on corn: N, P, K. It’s way out of whack right now.”
Prices of urea, DAP, MAP, and potash averaged $572, $702, $776, and $598 per ton last week, all of which are up 59% or more from 2020.
Ezinga said China last cut supply to this degree in 2008, when the country hosted the Olympics. Then, China reacted to a demand-driven market. Today, with the winter Olympics approaching in 2022, he said the market has changed but the problems haven’t.
“We're in a trade war,” Ezinga said. “You've got a supply-restricted market today. Ten to 12 years ago, you had a demand-led market with some supply constraints. Logistics is a mess, but I feel pretty comfortable that we're going to have the supply in the U.S. It's just — at what price?”
Early reports indicate China is restricting fertilizer exports to assure domestic supplies and take advantage of increased raw material prices.
As far as when the skyrocket fertilizer price trend bucks, Ezinga said there’s no timeline.
“It's going to turn when it turns,” Ezinga added. “And when it turns, it’s going to be ugly because there's going to be a bunch of people who own a bunch of high-priced product, and then the supply constraints will get lifted, and everybody's going to pay in excess. I think these prices remain out of whack through spring.”
Corn is in EVERYTHING from ethanol to paper products, to fullers in meds, corn syrup, animal food.
People really have no idea how pervasive it is.
This right here is how China gains control of the world’s food supply. We ain’t seen nothing yet re: food inflation.
Fertilizer for my hay fields increased slightly over 2x from last year. Added approximately $18/bale to produce with getting 4.8 bales/acre.
Who pays? I pass it along to the cattle producer. And who do you think they pass it along to.
These zipper heads are trying to break America with a1000 cuts. Any other _resident would and should consider this an act of war but not this addled brain pos.
Americans, prepare to defend yourself
Process chemicals in making.........Toilet Paper! Better stock up now!
Ain’t globalism just grand.
Nailed it, right there.
Looks like the ChiComs just got control of a lot of our major ports with the Ports America sale.
And not a peep out of Congress.
I hate to think of the bills for corn fields! Can't grow corn without it!
Small squares 40 pounders will be sold for $6 to $8 per bale for 2nd cut. My first always went into the silo.
Why we aren't partying like it's 1776 in Washington DC tarring, feathering and hanging all the bastards is just beyond me.
I've been ready, willing and able for 30+ years now and I fear I'm getting too old to participate afer all this poor ol' body of mine has been through.
“3. United States
Mine production: 23 million MT
In 2019, US phosphate mining decreased, dropping by 2.8 million MT from the previous year. The top phosphate-producing states, Florida and North Carolina, accounted for over 75 percent of domestic output. The other 25 percent of US production came from Southeast Idaho and Utah.
The majority of the phosphate rock mined in the US is used for manufacturing phosphoric acid and superphosphoric acid. These types of wet-process phosphate products are used for things such as animal feed supplements. About half of this type of phosphate is exported in the form of merchant-grade phosphoric acid, granular diammonium and monoammonium phosphate fertilizer.”
we are still too comfortable. And possibly think the system will correct itself in election cycles.
The sheep do not.
I cant even say its the dems because its every party. They waited, dumbed down pur children that we willingly gave them for a couple of generations and they know.
The foghters and freedom serkers are too old to match 50 miles on a perfect day. They used the patript act to militarize police forces.
Its cjess and we will lose. Unless we fo the unthinkable and take our families back. They didnt march 50 miles, why should we.. its not a game of force, its a game of strategy. We become like them when we kill and destroy and o how they would love to make us those people.
Dang that is good money. What type of grass?
True dat.
All the phosphate we use in the US is mined in the US so we are safe. Other countries such as Europe ate screwed
Well, that’s a dangerous game to play because China cannot feed itself.
CC
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