[quote=Arraya]
Actually world wide food riots started when fertilizer hit that number last summer. Several hundred million more were put into the starvation category. Which was more driven by oil costs because it is a flow through to all commodities. Though, phosphates are becoming an issue as well.
[/quote]
I wanted to clear something I said first. Prices of fertilizer, did not go from 200 to 300, but rather increased in prices by between 200 and 300. For example, potash went from $280 to $651.
$100 increase in price of potash has impact of $0.03 per bushel of corn. Prices of corn increased by $4 by mid 2008. Out of that, potash price was responsible by 11c increase or less than 3%. If you want to see where all the profit went, just take a look at ADM’s earnings.
$60 increase in fertilizer prices, which will not happen, would have about $0.02 impact on prices of corn, or about 0.5%.