DTN Retail Fertilizer Trends

By Cheryl Anderson
DTN Staff Reporter

OMAHA (DTN) -- Retail prices of most fertilizers followed no particular trend in the past week, with some falling, some increasing and some remaining unchanged, according to dealers tracked by DTN for the fourth week of October 2015.

The bottom line is that compared to a month ago, all fertilizers trended lower but none have budged more than 4%.

DAP averaged $546/ton, MAP $562/ton, potash $431/ton, urea $409/ton, 10-34-0 $583/ton, anhydrous $638/ton, UAN28 $292/ton and UAN32 $234/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.39/lb.N, UAN28 $0.52/lb.N and UAN32 $0.52/lb.N.

All retail fertilizer prices except 10-34-0 are lower now compared to a year earlier.

Urea has seen the most dramatic fall with prices now 19% lower than last year. Prices of UAN28 and UAN32 are both 11% lower than last year, while potash comes in at 10% lower.

Anhydrous prices are 9% lower than last year, while DAP and MAP come in at a 6% decline respectively. Starter fertilizer, 10-34-0, runs 5% above year ago levels.

FERTILIZER PRICES LIKELY TO SOFTEN IN COMING MONTHS

Retail fertilizer prices will likely soften as winter months approach, according to Bob Rogers from Maplehurst Farms in Rochelle, Illinois. This gradual weakening is due to growers cutting back slightly on application, as well as the market flooding a bit with inventories.

“We’re seeing some softening here through the fall on most products,” Rogers said.

With lowered prices, farmers may likely come back and buy more product in the spring, Rogers added. Overall, it is now pretty much a buyer’s market for fertilizer, he said.

Rogers said he has not had any purchasing yet for next season. “Farmers will probably wait until the first of the year,” he said, which is normal for the area.

Fall application has been running normal, Rogers said.

“Our applications have been good. Our rates have been good,” he said. “So, we’re more than happy with what we’re getting down and what they’re committing to for fall fertilizer.”

Rogers said he does not foresee any supply concerns, but believes there may be some issues with logistics on the Mississippi River.

“There’s plenty of fertilizer, but the transportation on the river is a little tough with the river being so low,” he said.

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):

Cheryl Anderson can be reached at Cheryl.anderson@dtn.com

Follow her on Twitter @CherylADTN

(MZT/CZ)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.