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Perfect Storm in Agriculture
- The agricultural sector faces a perfect storm of rising prices and supply shortages for essential inputs.
- This convergence of challenges resembles a financial crisis where all asset classes become correlated.
Fertilizer and Geopolitics
- Fertilizer is essentially stored energy derived from fossil fuels, making it vulnerable to energy price fluctuations.
- The Russia-Ukraine conflict disrupts fertilizer supply, as these countries are major producers.
Herbicide Market Disruptions
- Herbicide prices are rising due to shortages in glyphosate, a key ingredient derived from fertilizer.
- Glyphosate shortages create knock-on effects, driving up demand and prices for other herbicides.