![]() The Spot Affordability Index, which shows the relative price of a basket of commodities in comparison to a basket of fertilizer, is already in positive territory, with the 12-month moving average trending higher and on track to reach positive territory in the coming months. The combination of these two factors is helping affordability.” However, global consumption may take two or three years to recover, and the speed of recovery will depend on how long the current positive cycle lasts. “On the commodities side, values remain above average in some cases due to tighter stocks. ![]() “Most fertilizer prices are gradually returning to their historical averages, and in some cases, like urea, current values are below historical levels already,” says Bruno Fonseca, Senior Analyst – Farm Inputs at Rabobank. By that time, reasonable commodities prices were the only reason unaffordability didn’t surpass the record set in 2009 during the global economic crisis. Affordability deteriorated further when fertilizer prices hit new record-high levels after Russia invaded Ukraine. Starting in the first half of 2021, fertilizer prices began to trend higher due to supply constraints resulting from the Covid-19 pandemic. But in most cases, demand will take a while to return to pre-pandemic levels. According to a new Rabobank report, affordability is starting to improve, and a rapid recovery in consumption is possible in some regions in 2023. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.Extreme market volatility and record-high prices severely impacted fertilizer demand in 2022. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. Risk Disclaimers This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. ![]() Important Disclaimers The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only.
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