Fertilizer prices are skyrocketing: New Orleans granular urea prices, the most widely used nitrogen fertilizer, are up +89% since December, to $660 per short ton, the highest since September 2022. By comparison, the 2022 peak during the Russia-Ukraine war was $910 per short ton. This comes as the Strait of Hormuz shutdown has effectively halted fertilizer shipments from the Middle East. Furthermore, top exporters China and Russia are also curbing crop nutrient sales, tightening supply further at the worst possible time, right before the spring planting season. Higher fertilizer costs directly translate to higher food prices, threatening to reignite agricultural inflation as seen in 2022. Food is set to get even more expensive.(The Kobeissi Letter)