Cost Escalation: Middle East War Raises Urea Prices and 'Threatens' Soybeans

The war between Israel and Iran is already beginning to reflect on the planning of Brazil's next soybean crop. According to StoneX analysis, the instability in the region, which houses important fertilizer producers and exporters, has raised urea prices in international markets and raised a red flag for those who have not yet secured inputs. Iran, one of the main global nitrogen suppliers, has reduced its production in the face of uncertainties. In Egypt, another relevant point, the interruption of gas supply by Israel has paralyzed urea manufacturing. As an immediate reflection, various offers were withdrawn from the market, and prices rose in the United States, the Middle East, and Brazil. According to Tomás Pernías, StoneX analyst, "the market reacted quickly to war news, interpreting the scenario as a high factor. The moment is unfavorable for those who still need to buy fertilizers, especially with the approaching soybean crop." The impact goes beyond fertilizer prices. The ...