Crop Inputs

Crop input updates

Crude oil prices were volatile.

Crude oil prices began under pressure in July as shipping activity through the Strait of Hormuz improved and the Organization of Petroleum Exporting Countries (OPEC+) increased production quotas. This trend reversed mid-month as renewed attacks on Iran by the U.S. led to a sharp fall in exports out of the Persian Gulf. Global inventories are depleting quickly, raising concern among many energy analysts that further supply disruptions could lead to a rapid rise in prices.

Nitrogen product prices soften.

Fertilizer markets were mixed during July, with nitrogen prices generally moving lower while phosphate and potash prices remained comparatively firm. U.S. retail nitrogen prices declined throughout the month as supply availability improved and spring applications ended. Despite the decline, prices for several nitrogen products remain notably higher than July 2025 levels. While phosphate and potash producers saw elevated raw material costs and transportation expenses, prices were steady on a more balanced global supply and demand environment.

Transportation costs increased.

Extended shipping routes due to the conflict in the Middle East along with persistently elevated fuel prices are increasing transportation costs. Bulk shipping markets are further supported by demand from iron ore and grain trade coupled with weather-related vessel delays. Surging container rates persisted through mid-July due to capacity constraints spurred by strong demand. Companies have pulled forward peak season container shipment volumes by about two months in response to evolving trade policy and geopolitical trends. Trucking rates held relatively flat during July, but may ease going forward as peak season volumes ease. However, rising insurance premiums, enforcement of non-domiciled Commercial Driver License (CDL) and English Language Proficiency (ELP) regulations, and rising wages will continue to limit trucking capacity and maintain upward pressure on rates.