Hormuz Crisis Triggers Global Fertilizer Shortage, DAP Prices Surge

The global fertilizer market is facing a severe supply crunch due to escalating military conflicts in the Middle East and disruptions in the Strait of Hormuz.

Nearly one-third of global fertilizer trade passes through the strait, making it a critical chokepoint. The blockage has led to elevated energy costs and production expenses, pushing Diammonium Phosphate (DAP) prices up 28.4% to $802.5 per ton over the first nine months of this year.

The surge in input and energy costs has had a ripple effect on agricultural commodities, driving corn prices up by 13.3% and soybean prices by 22.6% over the same period.