A metric ton (2,204 pounds) of MAP (fertilizer, monoammonium phosphate) in Brazil in May was $1,350. Friday it was $640.
China’s November crude oil refinery production rose to the highest in 12 months, reaching 14.5 million barrels per day. The increased production resulted from the global shortage of diesel and cheap Russian crude oil that pushed up refining margins. China had two new refinery start-ups which contributed 520,000 barrels a day to the increased refinery output.
Once again, we see that the best cure for high prices is high prices. When the price of anything is very high, the market consumes less and produces more. It worked for MAP and now diesel fuel.