Compost rises 70% in 2026 and reaches US$684 per ton; With the war in the Middle East, restrictions in the Strait of Hormuz affect 1/3 of global shipments of the product
Urea futures contracts reached US$684 per ton, a value that represents the highest level since October 2022. The compound will appreciate in value by more than 70% in 2026.
The rise in prices is due to the conflict in the Middle East, which affects global fertilizer markets with restrictions on defined by Iran. The passage is responsible for around ⅓ of the world’s fertilizer shipments.
Another reason for the increase in urea prices is the increase in of natural gas —a fundamental input for fertilizer production.
According to Trading Economics, the member countries of the Gulf Cooperation Council account for approximately ¼ of world urea exports. The group includes Saudi Arabia, Qatar and Oman. The situation in the region intensifies concerns about global fertilizer supply.
Urea production in India was impacted by industrial plant shutdowns. Bangladesh also recorded outages due to scheduled maintenance. The shutdowns come against a backdrop of limited supplies of liquefied natural gas (LNG).
Urea futures reach highest level since October 2022
