THE WEEKLY TIMES | Input prices ease as Strait of Horumz stays open

Easing tensions in Iran following US airstrikes in June that spiked fuel and urea prices appear to be translating to a price reset, much to the relief of Australian growers.

Immediately after the strikes, which also brought about threats by the Iranian parliament to close the Strait of Hormuz, Australian urea prices increased by $100 to $150 a tonne as reported by The Weekly Times.

Victorian Farmers Federation grains group president Ryan Milgate said it was pleasing to see a stabilisation.

“Urea took a fair spike and we were looking at a $150 a tonne increase at the time, I heard of prices going up as high as $890 a tonne,” he said.

Before the airstrikes in Iran, the urea price was closer to $755 a tonne domestically.

“What we are starting to see now is some stability, and the emotion is going out of the market,” he said.

Grain Producers Australia Chair Barry Large said with already tight margins for growers, any increase to the price of inputs was a concern.

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