DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices continue to decline as has been the case over the past few weeks, according to retailers tracked by DTN for the second week of September 2015.

All eight of the major fertilizers slipped in price compared to a month prior. Two fertilizers were significantly lower.

10-34-0 was 6% less while urea was 5% lower compared to a month earlier. 10-34-0 averaged $594 per ton and urea averaged $433 per ton.

10-34-0's average price dipped under $600/ton for the first time since the last week of February 2015. That week the average price for starter was $598/ton.

The remaining six fertilizers registered lower prices, but these moves were fairly small. DAP averaged $563/ton, MAP $580/ton, potash $467/ton, anhydrous $656/ton and UAN32 $346/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.47/lb.N, anhydrous $0.40/lb.N, UAN28 $0.54/lb.N and UAN32 $0.54/lb.N.

Retail fertilizer prices have dropped in recent weeks but at a fairly limited clip, much to the chagrin of those who thought prices would plummet more than they have so far. Brent Hall, agronomy manager for South Central Coop located in Lacona, Iowa, said farmers should expect to see these smaller price drops to continue in the near term.

"We have seen some softening with prices, especially with P and K, but it has been a little downturn, nothing huge," Hall told DTN. "I think this kind of decline is what we will see through this fall."

Longer term, Hall said weather could be the key for what direction prices move this winter to next spring. If the majority of the Corn Belt sees a good fall fertilizer application season, prices over the winter could drop some.

However, if the Corn Belt sees a shorter fall application season because of early winter weather, then retail prices could be heading the other way, since more acres would need to be covered next spring, he said.

"I really think that however much fertilizer is applied this fall will be the key for where prices head longer term," he said.

With retail fertilizer moving lower in recent weeks, only one fertilizer is now higher compared to a year earlier. 10-34-0 is 7% higher versus last year.

The remaining seven nutrients are now lower compared to retail prices from a year ago. Both potash and MAP are 2% lower, DAP is 3% less expensive, anhydrous is 4% lower, UAN32 is 8% less expensive, UAN28 is down 9% and urea is 16% less expensive from a year ago.

DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

DTN Pro Grains subscribers can find current retail fertilizer prices in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

DTN's average of retail fertilizer prices from a month earlier ($ per ton):

Russ Quinn can be reached at russ.quinn@dtn.com

(MZT/AG)

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