Rocknrolllegend193

The Agriculture Boom Goes Bust

Look at what you wrote here, Andrew:

"It’s simple economics. Fertilizer prices are not inelastic. High prices are reducing total fertilizer use around the world. We could see a big impact on reduced consumption when the Q2 numbers come out in the next few days."

Wrong. Fertilizer prices ARE relatively inelastic. As long as there's a strong demand for food, farmers are gonna try and grow it. In fact, the precise reason for the recent spike in fertilizer prices is BECAUSE of the ever-increasing world food demand. There's a pretty direct correlation between fertilizer prices and food prices, because as DeltaXray7 wisely said, "If farmers want good yields per acre then they have to fertilze [sic]."