As CTH has noted since last October the rapid increases in fertilizer costs could potentially create a major issue for global food supplies later this summer. As the farming costs continue escalating, including fertilizer and diesel fuel prices, this will eventually lead to major price increases on the harvests. Field to fork inflation is looking increasingly severe later this year; what we have called the third wave of inflation.
Beyond prices, a primary impact in the U.S. market, concerns are now escalating about grain shortages {SEE HERE} and lower European crop yields which will lead to less food products on a global basis. According to information shared by ZeroHedge, “We think it will take at least 2-3 years to replenish global grains stocks,” Illinois-based CF Industries Holdings Inc.’s president and chief executive officer Tony Will said in a statement in Wednesday’s earnings report.”
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Axios is reporting on the continued escalation of fertilizer prices; however, they conveniently and purposefully avoid noting the origin of the problem in North America is directly the result of Joe Biden’s immediate energy policies that drove up the costs of natural gas (a critical component)
