International urea prices currently slightly subdued - Natural gas and corn prices fall The average international urea prices are fundamentally related to corn and natural gas prices. Since urea production is energy-intensive , a connection with natural gas prices is obvious. Production sites for the N fertilizer are therefore also in close proximity to the gas deposits. The cheapest option is the natural gas that occurs during crude oil production , which was simply flared off in earlier years. The capture and storage of gas requires costs that must be recouped by the price. Even stronger is the relationship of urea price to corn price . Depending on the level of corn prices, there is a high degree of willingness on the part of cereal producers to pay a reasonable price for the yield-increasing fertilizer.Since the fertilizer market tends to have monopolistic structures , it is possible to align the level of pricing, among other things, with the price of corn . The latest development in the month of Aug.2019 shows that falling natural gas and corn prices lead to a slight decline in urea prices. How strongly the factors influence the price of urea has varied over the years, because other factors are also effective. The relationships between natural gas, corn and urea prices provide a basic orientation .
