Yellow Signals Caution

Yellow is the color of caution

Yellow traffic lights function as a caution. Yellow in the energy industry is associated with sulfur.

As a result of the war with Iran a yellow flashing light is alerting us to challenges coming in the agricultural sector.

Bright yellow is the color of elemental sulfur, a bi-product of oil and natural gas and a key ingredient for making fertilizer.

The blockade of The Strait of Hormuz is disrupting the energy supply chain.

Less oil and natural gas, less sulfur, less fertilizer. Less fertilizer results in higher prices to farmers for fertilizer. Higher costs to grow crops will result in higher prices for food.

Rest assured the energy companies, refiners, shippers, chemical corporations agribusiness and grocers will be fine. They will pass the cost along. This increased cost will be paid for by ordinary people and families buying food at the grocery store.

You think the cost of gas is a problem and for most people it is.

But wait for it…higher cost of food in the grocery store is on the horizon.