DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices tracked by DTN for the first week of May 2016 continue to remain constant. Retail fertilizer prices have been unwavering for four consecutive weeks now.

Five fertilizers slipped lower while the other three fertilizers were higher compared to last month. None of the five fertilizers moved by any consequence. DAP averaged $475/ton, MAP $502/ton, potash $366/ton, urea $385/ton and 10-34-0 $560/ton.

The remaining three fertilizers were higher compared to the month earlier but again the move was fairly minor. Anhydrous averaged $589/ton, UAN28 $274/ton and UAN32 $321/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.36/lb.N, UAN28 $0.49/lb.N and UAN32 $0.50/lb.N.

With tight crop margins in place for the 2016 growing season, the natural reaction to counter this issue for some corn farmers would be to tighten the input spending belt. For many, they would probably start with cutting back some on fertilizer applications.

This is not true for others like Phil Cater, who farms near New Era, Michigan. He told DTN he is not planning on cutting back on a fertility program on his corn acres on his west central Michigan farm.

"Our light textured sands challenge us to feed the crop well, we just don't have a lot, or really any, reserve fertility," Carter said.

Carter broadcasts dry potash with a hydra-hume (a fertilizer adjuvant that improves the performance of liquid fertilizers) before planting and then he plants corn with liquid starter fertilizer in a 2x2 placement. He comes back with a side dressing operation with UAN28 somewhere before the corn is knee high.

In addition, he will be utilizing pre-side dressing nitrogen test (PSNT) this year, and he is also considering foliar application of micronutrients later in the growing season based on the tissue test.

"Micros are an important part of my fertilizer program as well," he said.

Retail fertilizer prices have stabilized in recent weeks, but still remain lower compared to a year earlier. All fertilizers are now double-digits lower.

UAN32 is 13% lower, 10-34-0 is 14% less expensive and both urea and MAP are 16% less expensive from a year previous. In addition, DAP, anhydrous and UAN28 are all 17% less expensive while potash is 26% lower.

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

(MZT/BAS/AG)

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