DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- The average retail price of some nitrogen fertilizers accelerated during the fourth week of March 2016, while the price of other fertilizers held steady, according to retailers surveyed by DTN.

As was the case last week, five of the eight major fertilizers edged higher compared to a month earlier. Both anhydrous and UAN28 were 6% higher compared to last month, while urea was 5% higher. Anhydrous averaged $569/ton, UAN28 $276/ton and urea $390/ton.

Two other fertilizers were also higher in price but the move to the high side was fairly slight. MAP averaged $501/ton while UAN32 averaged $312/ton.

Prices for the remaining three fertilizers slipped compared to last month but again the move was fairly minor. DAP averaged $475/ton, potash $371/ton and 10-34-0 $561/ton.

On a price per pound of nitrogen basis, the urea averaged $0.42/lb.N, anhydrous $0.35/lb.N, UAN28 $0.49/lb.N and UAN32 $0.49/lb.N.

PLANTING PREP NEARLY COMPLETE

Farmers continue to prepare for spring planting as the month of March closed. Matt Rush, a farmer from Fairfield, Illinois, said he has been busy readying his south-central Illinois fields for corn planting.

"We had maybe a little more than average rainfall but still all the wheat has [been] top dressed and if the weather holds out I would guess there would be corn being planted next week," Rush told DTN. "We would probably start somewhere around April 10."

Rush said he did lock in part of his fertilizer needs at the end of the year for tax purposes. While he pre-purchased some needs then, what he did lock in was a much smaller percentage than normal for that time of year, he said.

Then last week he purchased some dry fertilizer, mainly DAP and potash. In addition, he also pre-ordered about half of his anhydrous fertilizer needs for the rapidly approaching 2016 corn crop.

"I felt fertilizer was not going to move down anymore I guess and if anything it would probably start to move higher," he said. "I didn't want to have issues with supply so we took care of it."

Rush will side-dress his corn acres with anhydrous in May or June depending when the corn gets planted. After consulting with his local fertilizer retailer, he decided not to lock in all his anhydrous needs for the side-dressing. The retailer said there is a chance fertilizer prices could decline between now and when it will be applied, he said.

DECLINES FROM A YEAR AGO

Despite the recent rally in some fertilizers, all products remain double digits less expensive compared to a year ago, with 10-34-0 now 12% lower.

MAP, urea and UAN32 are all now 16% lower while both DAP and UAN28 are 17% less expensive from a year previous. In addition, anhydrous is 19% lower and potash is 24% less expensive 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 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

(AG)

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