Crop Comments: Fall fertilizer update
Just when the global fertilizer scene hints at calming down, one of the normally tamer (and lesser) components has begun misbehaving: elemental sulfur (S).
Before addressing the supply/demand orneriness of S, let me present some figures from the Argus Industry Newsletter for Oct. 15, 2026. The following values are strongly influenced by the geopolitical mess centering on the Strait of Hormuz. These are average values calculated from a range of dollar prices per short ton (2,000#) for the day of the quote. The location of the quote is the freight point of origin nearest the Northeast. In parentheses is that particular commodity’s price a year earlier: Urea (Cincinnati) $498 ($443); ammonium nitrate (Mid-South) $460 ($355); ammonium sulfate (Minneapolis) $445 ($368); urea/ammonium nitrate (Cincinnati) $433 ($368); ammonia (Eastern corn belt) $855 ($735); diammonium phosphate (Cincinnati) $863 ($825); mono-ammonium phosphate (Cincinnati) $858 ($815); muriate of potash (Vancouver) $304 ($318); sulfate of potash (West Coast) $738 ($710); and sulfur (Gulf Coast) $833 ($364).
Disruption of shipping through the Strait of Hormuz has triggered a severe global shortage of available S, indirectly impacting the phosphate fertilizer production chain. As a result, market concerns regarding global food supply inadequacy of that ingredient continue to rise. Prior to the escalation of the Strait situation, approximately half of global S was transported via the Strait. As a core raw material for manufacturing phosphate fertilizers, the critical shortage of S directly affects fertilizer application for the cultivation of crops such as corn, soybeans, rice and palm oil.
To make matters worse, the continuous expansion of industries such as battery metal processing is further driving up overall S demand, intensifying the supply-demand imbalance in the already tight phosphate market. Chris Lawson, vice president of Climatic Research Unit Market Intelligence & Pricing, admitted that current major global phosphate supply channels are under pressure, and the industry supply situation is severe.
Surging raw material prices are continuously eroding corporate profits, and leading fertilizer manufacturers are reducing production one after another. Fertilizer giant Mosaic Company has seen its profitability decline due to soaring S costs and has proactively cut phosphate production capacity in Brazil and the U.S. Morocco’s OCP Group, the world’s largest phosphate exporter, is also compressing production, using the excuse of equipment maintenance. Fares Al-Deriji, CEO of OCP Nutricrops (a subsidiary of OCP Group), stated that the company currently holds strategic inventories of S and finished fertilizers which can sustain production operations until the end of next July or even longer.
Amid this supply chain crisis, S prices have seen a surge. Christian Wendel, president of fertilizer trader Hexagon Group, said that current spot S supplies are essentially cut off, with prices soaring from a low point of $150 – $180/ton a year ago to $850 – $900 presently. Additionally, CIF prices in some regions are approaching $1,000/ton.
Willis Thomas, CEO of CRU Fertilizer Business, analyzed that even if manufacturers can procure S, the high raw material costs make the phosphate fertilizer business unsustainable. Many companies are already incurring losses solely from S input, excluding other processing costs. To make things even more interesting, my contact Jeff Cassim, general manager of Liquid Products (Seneca Falls, NY), stated, “Remember one U.S. phosphate producer has chosen to take their plant down rather than run it because of high sulfur costs.”
(Note: CIF (Cost, Insurance & Freight) means the seller arranges and pays for carriage to the named destination port and provides minimum cargo insurance. Risk transfers to the buyer when goods are on board at origin, even though the seller pays freight and insurance to destination. This distinction matters when fertilizer cargoes are delayed, damaged or subject to port charges.)
To avoid shipping risks, Saudi fertilizer companies have begun using trucks to transport products to Red Sea ports for export; such attempts are being met with limited success. Part of this problem is the fact that the overland distance between the Red Sea and the Persian Gulf is over 900 miles. CRU data show that, affected by the interruption of traffic in the Strait of Hormuz, local phosphate fertilizer shipments have plummeted by nearly 50%. Stein Haugen, head of an Australian fertilizer company, also said that current spot supplies of phosphates and liquid ammonia are extremely tight, with prices maintaining an upward trend. Urea market buyers are generally adopting a wait-and-see approach, hoping for the resumption of navigation through the Strait of Hormuz or for China to increase exports.
According to Argus, international spot market prices simultaneously resumed record highs. India recently completed an import tender for DAP, with a transaction volume of 1.347 million tons and a CIF price of $930 – $935/ton, marking a new high since July 2022. This represents a nearly 40% price increase compared to January 2026 and serves as a price benchmark for the current global fertilizer market.
Why is S so critical agriculturally? Sulfur is the cornerstone of the amino acid methionine, which must be grown by plants, unlike other amino acids, which can be synthesized by rumens in cows, sheep, goats, deer, buffalo, etc. Methionine is a major protein component in soybeans as well as most forages. If S is absent from the crop program, plants can’t produce methionine.
Removing methionine from livestock diets seriously undermines animal agriculture, which now competes with electric cars. There’s a liquid in all batteries (excluding flashlights, phones, handheld tools, portable radios, etc.), and that liquid is sulfuric acid. Who would have ever thought that cows might compete with electric cars for a soil nutrient?
by Paris Reidhead
