The tweeter is Global Chief Strategist @ Nordea.
Via the tweet machine:
Expensive nat gas -> expensive fertilizers -> expensive food!
— AndreasStenoLarsen (@AndreasSteno) November 8, 2021
What started as a supply issue is getting broadbased.
(fertilizer spot price below) pic.twitter.com/yytuqkajtj
He is of course talking about the nitrogen fertilizers, urea and ammonia, the sector upon which we've also focused as they both come from natural gas feedstock.
Additionally, the two other things plants need phosphate and potassium, have also been trading higher
Of the three main crops grown in the U.S., wheat is the most directly troubling for consumers, beginning last summer with the drought in North Dakota whacking the durum wheat crop, probably the best pasta wheat in the world. The northern plains drought is abating but the price increases have now spread to the stuff traded in Chicago and Kansas City.
Weekly bars for Chicago contracts from FinViz, 855.25 up 21.00 (2.52%) on the day, last:
