Fertilisers

  • Overview
  • Contract Specifications
  • Execution Fee

Fertilizer Price Methodology

According to the International Monetary Fund (IMF), the world growth has slowed to 3.3% due to the global impact of the euro crisis. Unfavourable weather events resulted in negative industrial output, which then lead to high agricultural commodity and food prices. The high agricultural commodity prices can stimulate fertiliser demand, especially in countries where farmers respond to market signals.

The Agri-commodities industry has been experiencing high volatility and speculation. In an attempt to curb price inflation and volatility, the industry now wants greater price transparency. Traders, producers, end users in related products such as grains and oilseeds are increasingly looking to manage their price and counterparty risk through cleared trading opportunities.

Fertiliser derivatives contracts are cash-settled agreements settled against the Fertiliser Index. The Fertiliser Index, representing physical spot prices, is produced weekly with data provided by Argus Media,  CRU and Fertecon, the world’s three most respected providers of fertiliser information.

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