Geopolitical tension drives up urea prices, according to StoneX

The global urea market has risen again in recent weeks, driven by a gradual recovery in demand and increased geopolitical tensions in the Middle East. This assessment comes from Tomás Pernías, Market Intelligence Analyst at StoneX.

According to the expert, after a period of slowdown in negotiations, caused by high prices and worsening terms of trade, the market has regained momentum. In Brazilian ports, urea prices have risen for three consecutive weeks.

Pernías highlights that the weakening of negotiations between the United States and Iran, new threats of restrictions on Iranian ports, and reduced traffic in the Strait of Hormuz have rekindled concerns about global supply. This scenario coincides with the beginning of the replenishment of stocks by Brazilian buyers for the next harvest.

Despite the upward trend, the analyst notes that the exchange rates between corn and urea remain more favorable to producers than in April, which could stimulate new purchases if geopolitical uncertainties continue to put pressure on the market.