EL7.AI
CommoditiesMediumUpdated•Originally published 25 March 2026•Updated 26 March 2026•
1 min read

Goldman Sachs Warns of Food Price Spike Amid Fertilizer Supply Disruptions

Key Facts

1Goldman Sachs analysts warned that disruptions in the Strait of Hormuz threaten the global nitrogen fertilizer market, which accounts for 60% of global use.
2Fertilizer accounts for approximately 20% of grain production costs, potentially leading to reduced global crop supply.
3Russia suspended ammonium nitrate exports from March 21 to April 21 to secure domestic supplies.

Goldman Sachs analysts have issued a warning regarding a potential surge in global food and grain prices driven by significant disruptions in the fertilizer supply chain. The bank highlighted that tensions in the Strait of Hormuz threaten the global nitrogen market, compounded by Russia's suspension of ammonium nitrate exports. This price crisis coincides with the start of the US planting season, significantly intensifying seasonal pressures on farmers and markets alike. Adding a political dimension, Donald Trump is scheduled to hold an upcoming meeting with industry leaders in a key political region to discuss the situation. Since fertilizer accounts for approximately 20% of grain production costs, supply constraints pose a direct threat to global crop yields. Market participants are closely monitoring the impact on agricultural commodity futures and major producers such as Mosaic (MOS) and CF Industries (CF).