DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Average retail fertilizer prices continued their slow move lower the first week of December 2015, according to fertilizer retailers tracked by DTN.

Seven of the eight major fertilizers were lower compared to a month earlier, but none were down significantly. DAP has an average price of $541 per ton, MAP $559/ton, potash $421/ton, urea $400/ton, 10-34-0 $578/ton, anhydrous $627/ton and UAN28 $286/ton.

One fertilizer was unchanged in price from a month previous. UAN32 had an average price of $332 per ton.

On a price per pound of nitrogen basis, the average urea price was at $0.43/lb.N, anhydrous $0.38/lb.N, UAN28 $0.51/lb.N and UAN32 $0.52/lb.N.

Farmers have been busy applying fertilizer this fall in the Eastern Corn Belt, according to Stan Geiser, assistant manager for Crop Production Services located in Upper Sandusky, Ohio. Harvest was fairly early this year, allowing plenty of time for fall field work before the weather turns cold, which really hasn't occurred yet.

"We usually try to get about half of our acres covered with fertilizer in the fall to spread the workload away from the busy spring," Geiser told DTN. "I think we are pretty close to that this fall, maybe even a little more than half."

Geiser said his office has already been fielding calls from farmers interested in pre-buying some 2016 fertilizer needs at year end for tax purposes. The number of calls has been less than in recent years, he said. That's likely due to mostly average yields in their region after a wet growing season along with farmers having less income with tighter margins this year, he said.

As far as fertilizer prices go, Geiser said there are some indications retail fertilizer prices could be lower this spring, but he is not sure how low prices could go.

"We saw prices fall some this year, especially with potash, but I think many thought we would see a larger drop with fertilizer," he said. "It could be the same situation next spring with some lower prices, but maybe not as low as people think."

With retail fertilizer moving lower in recent months, only one fertilizer is now higher compared to a year earlier. 10-34-0 is 2% higher from last year.

The remaining seven nutrients are now lower compared to retail prices from a year ago. Both DAP and MAP are now 6% lower, UAN32 is 10% lower and both anhydrous and UAN28 are 12% less expensive. Potash is 13% lower while urea is 18% less expensive than the previous year.

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 price 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

Follow Russ Quinn on Twitter @RussQuinnDTN

(AG/BAS)

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