DEF Market Update
The average New Orleans (NOLA) price per short ton of prilled urea increased $10.77/ton from $207.33 in December to $218.10 in January. Urea is the primary ingredient in Diesel Exhaust Fluid, so rising commodity prices will affect the DEF market.
Although many fleets think of urea as an ingredient in DEF, fertilizer applications are a much larger use-case for urea around the world. We are starting to see futures prices rising for Urea in anticipation of a strong planting season this year. With the fall flooding, a lot of farmers were not able to get an application of fertilizer down. This will lead to a strong demand this spring. We can expect the NOLA index to continue to rise over the next few months.
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MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
