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Urea Prices Fall 50 Percent but Phosphate Costs Stay High and Food Prices May Rise for a Year
Fertilizer prices are falling as the Iran war appears to be winding down. Urea has declined sharply while phosphate prices stay elevated, with analysts citing demand destruction from farmers.
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Urea prices have fallen 50 percent from their April peak as of June 22, 2026, Semafor reported. Phosphate fertilizer prices remain high. The declines follow signs that the Iran war is winding down. About 50 percent of total food output depends on artificial nitrogen-based fertilizers, mostly urea.
Farmers planted less or switched to less fertilizer-hungry crops, which analysts cited by the Financial Times described as demand destruction. A food economist cited by Bloomberg said supply chains would take six months to normalize after the disrupted planting season.
The same economist stated that higher fertilizer costs are now baked into food prices and may take a year to appear in retail prices.
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