Comment by metiscus
1 day ago
Fertilizer is pretty fungible and is a global market, so even if the US is primarily supplied by Canada, and overall global demand remained constant, prices would go up since there will be supply reduction due to the Hormuz strait being closed.
Having the two major inputs turned off turns fungible to non-fungible
"Fungible" here means "traded globally", as others have noted elsewhere in this thread.
No, but it makes it pricier. In case you don't know:
"Fungible describes goods, assets, or commodities that are mutually interchangeable, meaning one unit is equivalent to another of the same type and value.
mind you, the hormuz fertilizer and the canadian fertilizer arent interchangeable.
they are two parts of a three part whole.
they arent perfectly fungible either - the core nitrogen, potassium, and phosphorus can come in many forms, and need some chemical processing to get into the right shape for use