Oct 28, 2021

Russia Considers Fertilizer Export Limits

Price of fertilizers has more than doubled with surging gas and oil prices

Russia Considers Fertilizer Export Limits

  • The Russian government is discussing restrictions on nitrogen fertilizer exports amid a surge in worldwide prices.

  • Russia, the world’s largest fertilizer exporter, is facing production shortages and exploring ways to ensure local demands are met.

  • The government has already implemented price fixes through the end of 2021, though this may also be extended through the 2022 sowing season.

  • However, no details to date have been released.

  • The discussions come after China, the second largest supplier, tightened fertilizer exports to cool surging prices two weeks ago.

FBN’s Take On What It Means: The price of fertilizers has more than doubled since the summer on surging gas and oil prices. Export limits from Russia could further support input rationing and push acres away from high input crops, as well as make grain production even more weather dependent.

FBN
FBN

Mato Grosso to Use 7.7 MMT of Corn for Ethanol

  • Brazil’s main ag state, Mato Grosso, is projected to consume 7.7 million tonnes of corn to produce ethanol in 2021/22, according to the state’s main ag agency.

  • This will be a 5.7% increase year-over-year; the state consumed 7.3 million tonnes last year.

  • Mato Grosso is expected to harvest 39.6 million tonnes of corn in 2021/22, meaning 18.5% of the crop will be destined for biofuel.

  • Brazil as a whole produced 676.3 million gallons of ethanol last year, with Mato Grosso accounting for over 85% of the total.

FBN’s Take On What It Means: The state agency, in its weekly report, stressed the investments aimed at increasing ethanol production capacity in Mato Grosso, which has boosted the demand for corn. To underlie that point, corn used for ethanol increased from 5.4 MMT in 2019 to 7.3 MMT in 2020, even when total corn production declined 8.1% due to poor weather.

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Marketwatch: Nov, 28

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.5712
high: 5.7406
low: 5.5262
close: 5.7276

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 12.1595
high: 12.1807
low: 12.0432
close: 12.166

cmdty National Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.331
high: 8.4769
low: 8.226
close: 8.444

cmdty National Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.7213
high: 7.8263
low: 7.6213
close: 7.7716