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We have previously warned of a major food crisis and supply problems in the fertilizer market. Well, now it’s worse because that was BEFORE we had the gas crisis. Why is that important?

Natural gas is THE crucial raw material for the production of fertilizers. Urea is essentially ammonia in a solid state, the production of which ammonia reacts with CO2. And we all now know – thanks to the climate Nazis – that CO2 is currently the devil. The problem, of course, is that without natural gas there is no urea, and without urea there is no fertilizer. And without fertilizer … well, we’re going to eat each other up.

Here are the spot prices for urea.

Something different that we noticed a while ago (in Korea) but that seems to be a bigger problem now.

Here is an article via an Australian farmer warning that the urea crisis could bring normal life to a standstill in a matter of weeks.

Here’s what he says:

We will no longer be able to raise cattle and grow food, we will not be able to grow grain or the like, but, even if we could, we cannot transport it because we do not have AdBlue (AdBlue is for diesel vehicles required) – half of all trucks on Australian roads run on diesel.

From February onwards there could be no trucks on the roads in Australia and no trains on the rails.
So from February the whole country will literally stand still.

The farmer continues:

Take a look in your closet and fridge, and I guarantee you that almost every single product has been used at some point, whether it’s a steak, a salad, or a can of baked beans.

In Europe we are faced with a full blown energy crisis made worse by increasingly destructive policies by top politicians (let’s produce more solar and wind energy, although it has proven to be inadequate and very expensive) and a crisis in the supply chain.

Take a look at European energy prices.

Here we are now experiencing the beginnings of what a storm promises to be. Think cold and hunger and you have the right picture.

Most of this electricity is obtained from natural gas, and this natural gas comes from the front runners in Russia.

European gas prices rise to over 100 euros with a view to Russia.

Before a series of auctions for pipeline capacity, which are seen as a test of Russia’s willingness to alleviate supply bottlenecks, the European natural gas price rose to over 100 euros or 190 US dollars per barrel of oil equivalent.

The “day-ahead” auctions for space in Ukrainian pipelines and capacities in the German Mallnow compressor station will send a clear signal of how serious Russia is with increasing delivery volumes to the West. The region’s largest supplier has announced that it wants to continue to replenish European storage facilities by the end of December, but has not used any short-term auctions to deliver more fuel.

So right now we have a situation that is going to turn your head. Europe is out of gas. They have spent most of the last decade shedding their own domestic energy and replacing it with gadgets that, while doing well on the Guardians’ scorecard, have proven miserable at generating … well, electricity.

As Europeans are freezing now and will soon be starving, a war is due. Remember that in the past, rising food prices have led to riots, revolutions and wars. On the positive side, they can also be used to cure obesity, which is a plus.

Back to urea and food. You cannot make fertilizer without urea and natural gas. If the price of either of these two products increases (which it does both), it has a significant impact on the price of fertilizers. The price of fertilizer, in turn, affects the price of food. This is because fertilizer is the second largest cost factor in agricultural production. The first is … you guessed it, Diesel.

We now have a bull market not only in urea, but also in natural gas and, to top it off, in diesel.

The expectation that food prices will remain stable when the ingredients used to make them all skyrocket seems downright silly to us.

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