India slashes urea order; could lead to farmer savings

A fertilizer market analyst says India is slashing its urea purchase and it could lead to savings for U.S. farmers.

Josh Linville, at StoneX, tells Brownfield…

“We’re getting more and more optimistic.”  He says, “I think there’s gonna be a pretty solid opportunity. It’s probably going to be in the middle of summer. It’s going to be a period when it’s kind of uncomfortable to go out and spend money on fertilizer for 2025 crops. But we’re getting more and more hopeful that’s going to present itself.”

He says the move leaves a lot of extra supply on the market, but the full effect on prices will take time to reach farmers.

“A ton that’s in the Arab Gulf right now takes 30 days to get to the US and once it’s here, then you gotta get it through the system, and that’s another thirty-day period.”  He says, “So, it’s going to take a little bit for these prices to trickle down into the marketplace, but at least there’s finally some writing on the wall.”

Linville says farmers should keep an eye on the urea market for potential savings as the season progresses.

AUDIO: Josh Linville – StoneX

  • India’s primary agricultural nitrogen source is urea, so one must wonder why tge would cut urea imports. Turns out, they are planning to make it there, building over half a dozen huge fertilizer factories. But wait, there’s more to this story as they are investing in a nanotechnology-based delivery system technology which shows promise to improve environmental aspects of urea applications and improve nitrogen utilisation efficiency. However, the potential toxicology of such nanomaterials has not yet been thoroughly studied.

    In the meantime, US farmers will be able to enjoy reduced pricing and increased availability of a known product applied judiciously in order to curtail environmental losses. Question is, will these technologies improve soil microbiome, crop qualityvand yields.Only time will tell.

Add Comment

Your email address will not be published.


Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!

Brownfield Ag News