DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Fertilizer prices continue to slowly decline in price, according to retailers tracked by DTN for the first week of February 2016.

All eight major fertilizer prices slipped lower compared to a month earlier, with only one down any significant amount. Anhydrous was down 5% compared to last month and the nitrogen fertilizer had an average price of $555/ton.

The remaining seven fertilizers were lower but just slightly. DAP averaged $488/ton, MAP $502/ton, potash $381/ton, urea $370/ton, 10-34-0 $549/ton, UAN28 $263/ton and UAN32 $305/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.34/lb.N, UAN28 $0.47/lb.N and UAN32 $0.48/lb.N.

Since mid-2015, declining retail fertilizer prices have encouraged some farmers to delay fertilizer purchases.

Chris Bowman, who farms near DeWitt, Iowa, said he normally would have some fertilizer locked in by this time of the year. However, with lower fertilizer prices this winter, he has chosen to wait.

"I plan on committing some tons in the next few weeks just to be sure the supply is there in time for preplant application," Bowman told DTN.

Bowman will purchase phosphorus and potash and possibly some nitrogen as urea and anhydrous.

Other farmers decided to lock in some fertilizers but not other types of nutrients. Levi Taylor, who farms near Ypsilanti, North Dakota, said he purchased his nitrogen source, urea, several months ago but hasn't committed to P needs yet.

"We locked in our urea at $350/ton right after Thanksgiving as we thought that was a good price," Taylor said. "We haven't pulled the trigger yet on MAP but at some point soon we will."

Taylor said he has been in contact with local fertilizer retailers and MAP has a local retail price of $450/ton. He doesn't apply much potash and also does not use any starter fertilizers.

Thanks to the price slide, all fertilizers are lower compared to a year earlier. All but one fertilizer is now double digits lower. The only fertilizer not down much is 10-34-0, which is down 7% versus the same time a year ago.

DAP is now 14% lower, MAP is 16% less expensive, UAN32 is 17% lower and UAN28 is 20% less expensive from a year previous. Potash, urea and anhydrous are all now 22% lower compared to a year earlier.

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

Follow him on Twitter @RussQuinnDTN

(MZT/CZ)

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