Global food prices continue to rise, fertilizer prices at home and abroad differ greatly 

Global food prices continue to rise, fertilizer industry boom bottomed out. 2020 global new crown epidemic background

The importance of food security is further highlighted in the context of the global new crown epidemic in 2020.

In addition to the drought in the United States, Brazil and other major agricultural countries in 2021, the domestic North China

In the autumn harvest, the most severe flooding in the past 50 years has caused global food prices to go up.

According to FAO data, the global food and cereal price index has been rising since July 2020, with a slight decline from July to August 2021.

According to FAO data, the global food and cereal price indices have been rising since July 2020, and continued their upward trend after a slight decline from July to August 2021.

159.30 and 170.10 points, up 70.92% and 75.54%, respectively, compared with July 2020. High food prices

In the background of high food prices, the prosperity of the planting industry chain has rebounded significantly, and farmers' willingness to plant has increased, leading to a rise in the quantity and price of agricultural consumption demand.

The demand for agricultural supplies will rise in volume and price. According to USDA data, in 2021, the U.S. planted corn, soybeans, cotton and rape 3,754, 3,546, 469 and 81 million hectares, respectively.

According to USDA data, in 2021, the United States planted 3,754, 3,546, 469, 81 million hectares of corn, soybeans, cotton and oilseed rape, respectively, +5.4%, +2.1%, -2.6% and +9.8% year-on-year; according to the National Bureau of Statistics

According to the National Bureau of Statistics, the sown area of grain crops in China will continue to grow from 2020 to 2021, reaching 118 million hectares in 2021, an increase of 0.74% year-on-year.

growth of 0.74%. 

Against the backdrop of the Russia-Ukraine conflict, global food prices continue to move strongly upward, with large differences in fertilizer prices at home and abroad. According to

According to FAO data, Russia is the third largest wheat producer in the world, with a production of 85.89 million tons of wheat in 2020, accounting for a significant share of global wheat production.

Russia is also the world's largest wheat exporter, accounting for 21% of global wheat exports in 2021.

Russia is also the world's largest wheat exporter, accounting for 21.99% of total global exports in 2021. In addition, due to its location in one of the world's three black soil regions, Ukraine has

Ukraine is the world's third largest exporter of corn, accounting for more than 10% of global exports, and is known as the "breadbasket of Europe" due to its high quality land resources.

After the Russia-Ukraine conflict in February 2022, both sides announced a ban on the export of some agricultural products, and transportation was blocked.

In the wake of the February 2022 conflict between Russia and Ukraine, both sides announced a ban on the export of some agricultural products, and transportation was blocked, exacerbating global food supply shortages and driving food prices to record highs. In addition, rising global shipping costs, high overseas energy prices such as natural gas and

In addition, rising global shipping costs, high overseas energy prices such as natural gas, and sanctions imposed by Western countries on Russia and other countries have also led to

Global fertilizer production capacity release does not meet expectations, and import and export is not smooth. In the context of the gradual balance between supply and demand and the growing importance of food, fertilizer production capacity has not been released as expected.

In the macro background, the boom of fertilizer industry bottomed out and prices started an upward path. According to Wind data

As of April 14, domestic urea (46%), monoammonium phosphate (55% powdered), diammonium phosphate and potash were quoted at 2,925, 3,925, 3,925 and 3,925 respectively.

As of April 14, domestic urea (46%), monoammonium phosphate (55% powder), diammonium phosphate and potash were quoted at RMB2,925, 3,600, 3,970 and 4,940 per ton, up 15.8%, 28.6%, 5.3% and 29.7% respectively from the beginning of 2022.

29.7% from the beginning of 2022, and 57.3%, 77.3%, 60.1%, 148.2% from the beginning of 2021; in addition, fertilizer prices at home and abroad

In addition, the price difference between domestic and overseas fertilizers is large.

The international prices of urea, monoammonium phosphate, diammonium phosphate and potassium chloride were quoted at 5,024, 7,715, 5,562 and 5,526 yuan per tonne respectively on April 14 (translated at US$1=RMB6.41), which were higher than the domestic prices by 2,099, 4,099 and 4,099 yuan respectively.

This is 2,099, 4,115, 1,593 and 586 Yuan/ton respectively higher than the domestic price, and fertilizer exporters are expected to make a good profit.