Russia is among the world’s top exporters of urea fertiliser, diammonium phosphate (DAP) fertiliser and Muriate of Potash (MOP) fertilisers.

The price of urea fertiliser hit US$950 per tonne last week while the price for April delivery rose above $1,000 per tonne.

Meanwhile, the soaring price of gas needed in fertiliser manufacturing is driving up prices of urea and nitrogen fertiliser.

Adding to market turmoil is uncertainty over Argentina's export ban on soybean oil and soybean meal.

In the near future, even though peace is negotiated between Russia and Ukraine, we don't think the Western countries will lift the sanctions. Just look at Venezuela and Iran you will realize the sanctions will only be lifted when a pro-western government takes power.

In short, the fertiliser shortage is going to impact the production level of crops and food prices will remain high for a prolonged period.

If you want to profit from the high food prices, take a long position in these products. You can use these tools to understand whether the market is still bullish on agriculture prices or started to turn bearish.

Wheat
Corn
Soybean
Natural Gas