UAN - UN food price index hits all-time high; Governments take action to control damage

The United Nations Food Price Index reached an all-time high in January, and the highest level in "real" terms since the early 1970s. With wheat (W_1:COM) facing security of supply concerns as Russian troops gather on the Ukrainian border, prices have hit a decade high. Meanwhile a smaller-than-expected soybean (S_1:COM) harvest in Brazil, paired with increasing demand from bio-fuel producers like Valero (NYSE:VLO) and Renewable Energy (NASDAQ:REGI), has driven soybean prices to a decade high as well. Compounding problems for consumers, natural gas prices in Europe sit at near record highs, driving fertilizer prices globally to nearly 3x pre-pandemic levels; a benefit to US producers like CF Industries (NYSE:CF) and CVR Partners (NYSE:UAN), but another reason for food prices to continue rising in 2023. Russia recently banned export of ammonium nitrates as part of a plan to ensure affordable fertilizer supply to Russian farmers; China is banning phosphates, a major component

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UN food price index hits all-time high; Governments take action to control damage