By Joe Stonor

Shares in major agricultural commodity producers rose over heightened fears of global fertilizer shortages caused by the continuing blockage of shipping through the Strait of Hormuz.

Fertilizer producer's stocks were up in early European trade Thursday even as broader indexes faltered.

"The conflict triggered immediate volatility in fertilizer benchmarks reacting to the threat of prolonged global shortages," Jefferies analysts said, adding that they expected prices to remain high through the first half of next year.

Norwegian group Yara International rose 4.3%, extending gains since Feb. 27 to over 11%. The company's relatively high renewable production of ammonia--a crucial building block in fertilizer production--helps to insulate its production from the surge in natural gas prices caused by the conflict.

Chemicals group K+S shares rose 9.65% after the Germany company announced market beating earnings Thursday, though its guidance didn't account for any impact from the conflict in the Middle East. The company is trading 14% higher compared with pre-conflict levels.

In the U.S., Florida-based Mosaic Company was the sharpest premarket riser in the S&P 500, climbing 5.8% to $31 a share. Ammonia producer CF Industries was close behind, rising 5.2%, while peer Nutrien gained 3.9%.

Prices for chemicals crucial to the production of fertilizers have shot up since the U.S. and Israel launched attacks against Iran.

Gulf countries are among the world's most important exporters of urea--a natural organic compound--on the globe, while around one-third of global traded nitrogen fertilizer is funneled through the Strait of Hormuz, according to data provider Independent Commodity Intelligence Services.

Global ammonia benchmarks have risen by around 10% since the beginning of the conflict, the Jefferies analysts said.

The timing of the conflict--just ahead of the northern hemisphere's spring season when fertilizer is applied to crops--means demand for fertilizer will remain high, the analysts added.

European indexes are currently down between 0.3% and 1.4%, while futures for the S&P and Dow Jones Industrial average are down 0.6% and 0.7%, respectively.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

March 12, 2026 09:19 ET (13:19 GMT)

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