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Here’s How the Energy Crisis Turns Into Hunger and Then… War?
Here’s How the Energy Crisis Turns Into Hunger and Then… War?
We have previously warned about a whopping food crisis and supply problems in the fertilizer market. Well, now is worse because that was BEFORE we had the natural gas crisis. Why is that important?
Natural gas is THE critical input into making fertilizer. Urea is essentially ammonia in solid state, the process of which entails reacting ammonia with CO2. And we all now know — thanks to the climate nazis — that CO2 is currently the devil. The problem of course is that with no natural gas there is no urea, and with no urea there is no fertilizer. And with no fertilizer… well, we will eat each other.
Here are the spot urea prices.
Something else that we had noted some time back (in Korea) but which now seems like a larger problem.
Here is an article about an Australian farmer who warns the urea supply crisis could halt normal life within weeks.
Here’s what he says:
‘Not only will we not be able to grow cattle and we will not be able to grow food and we will not be able to grow grain or anything like that, but even if we could, we can’t move it, because we can’t turn a wheel in a truck because we have no Adblue,’ [AdBlue is needed for diesel vehicles — half of all trucks on Australian roads run on diesel
As of February we might not have a truck on the road in Australia, we might not have a train on the tracks.
‘So quite literally the whole country comes to a standstill as of February.’
The farmer then, goes on to say:
…click on the above link to read the rest of the article…
China Export Curbs On Fertilizer Could Worsen Global Food Price Shock
China Export Curbs On Fertilizer Could Worsen Global Food Price Shock
China’s move to impose export restrictions on fertilizers will be felt worldwide. Beijing’s increased scrutiny comes as global fertilizer markets have been battered by plant shutdowns and skyrocketing prices that may continue to boost food inflation well into 2022. Chinese Communist Party officials have called for stable fertilizer supplies and food security amid overseas turmoil.
On Oct. 15, Beijing implemented a new rule requiring additional inspection of fertilizer exports. The General Administration of Customs added new inspection requirements on urea to ammonium nitrate, according to Bloomberg.
Last month, a statement published on WeChat by the National Development and Reform Commission, China’s top economic planner, urged local authorities to ensure stable prices by keeping fertilizer plants operating despite widespread power cuts. This call for adequate fertilizer supplies is critical for the country to sustain agricultural production amid mounting food security risks.
Despite export curbs, Urea futures in Zhengzhou recently hit a new record high.
Bloomberg sources said some recent Chinese fertilizer cargoes had been delayed by customs for additional checks to obtain new export certificates. They said some shipments would be rerouted for domestic markets or face further delays.
A reduction in exports from China (a country that controls 30% of the global fertilizer market) could cause shortages in India, Pakistan, and Southeast Asia, the biggest buyers of its fertilizers. Higher prices could force farmers to plant less and or have to raise crop prices. The UN’s global food tracker is at a new decade high and may continue to soar higher.
Signs of a fertilizer shortage have already emerged. Europe may face difficulties sourcing fertilizer supplies at multiple domestic plants that have shuttered or reduced the output of the nutrients because of high natural gas prices. China’s export restrictions will make it harder for the euro area to import supplies…
…click on the above link to read the rest of the article…
