Josh Linville: Fertilizer Market in Uncharted Waters as Costs Soar

Josh Linville: Fertilizer Market in Uncharted Waters as Costs Soaryoutu.be

Rising fertilizer prices have develop into a subject of widespread dialog because the conflict between Russia and Ukraine broke out, with world headlines sparking issues about shortages and better meals costs.

Chatting with the Investing Information Community, Josh Linville, director of fertilizer at StoneX, mentioned that whereas the battle between the 2 nations has introduced the fertilizer area into focus, it is from the one issue at play.

“That is the one (occasion) that is lastly sort of introduced it to the forefront … (however) this is not one thing that occurred in a single day, this isn’t only a Russia/Ukraine state of affairs,” he mentioned in the course of the interview.

Linville defined that fertilizer costs hit a low level in the summertime of 2020, however since then varied components have mixed to push the market upward — these embrace COVID-19 stimulus within the US, pure gasoline worth will increase in Europe and manufacturing outages brought about not solely by the pandemic, but in addition by occasions like Hurricane Ida.

That is to not downplay the significance of the conflict between Russia and Ukraine — Linville famous that Russia performs a key position in world fertilizer manufacturing, and mentioned that the power of different nations to extend their output is restricted.

“Since this Ukrainian/Russian conflict has been happening, I’ve seen one thing I by no means thought I’d see, and that is many of the free world coming collectively and saying, ‘We’re so adamantly towards what you could have accomplished that we’re fully shutting off our economies to you.’ I by no means thought we might see this occur,” he mentioned.

Talking about how larger fertilizer costs are affecting meals costs, Linville mentioned whereas he would not purchase into the concept of meals shortages, it is clear that meals is already turning into dearer. “However once more, this is not one thing that simply occurred with Russia/Ukraine. This was already taking place,” he emphasised.

Wanting ahead, he would not anticipate fertilizer costs to remain as elevated as they’ve been, but in addition would not see them going again all the way down to the degrees seen in the course of the summer time of 2020.

“All of this stuff got here collectively to place us to the place we’re at present,” Linville commented. “It isn’t going to be a single occasion that will get us again all the way down to the place we have been — it is going to be a very long time interval of therapeutic earlier than we get again to what we take into account regular on this business.”

Watch the interview above for extra of his ideas on the fertilizer market.

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Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.