Prices for urea, a key component in global fertilizer production, are surging as violence escalates in the Middle East, disrupting supply chains in one of the world’s most critical fertilizer-producing regions.
According to Bloomberg, unrest in the region is interfering with the flow of urea exports from the Persian Gulf, which accounts for nearly half of the world’s urea supply. The geopolitical instability has prompted countries like Iran and Egypt to scale back production, further tightening global availability.
The rising cost of urea is expected to place added pressure on agricultural producers already facing volatile input costs. Fertilizer prices are a key driver of overall food production costs and can impact crop planning decisions across major farming regions.
Dale Sandlin with Southeast AgNet provided this report as part of the continuing coverage of global fertilizer markets and their impact on U.S. agriculture.
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