DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices continued to move very little the first week of June 2016, according to fertilizer retailers surveyed by DTN. Fertilizer prices have been steady for nine consecutive weeks now.

All eight fertilizers were lower compared to last month, but has been the case in recent weeks, none of these fertilizers were down significantly. DAP had an average price of $470 per ton, MAP $498/ton, potash $359/ton, urea $370/ton, 10-34-0 $556/ton, anhydrous $569/ton, UAN28 $267/ton and UAN32 $310/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.35/lb.N, UAN28 $0.48/lb.N and UAN32 $0.48/lb.N.

It has been a bit of an unusual spring in that retail fertilizer prices have been extremely steady for most of the application season. With the exception of a few weeks earlier this spring, prices have not moved much.

Bob Spratt, manager of LeRoy Fertilizer Services located in LeRoy, Illinois, said farmers in his region of central Illinois have pretty much wrapped up side-dressing nitrogen and are now working on post herbicide spraying on corn and soybeans. He estimated they are about half done with this chore.

Retail fertilizer prices could be heading lower this summer, Spratt said.

"Historically, the midsummer period is the low point of the fertilizer market, and all indications are this year will be no different," Spratt told DTN.

Longer term, he said he believes the retail market could be flat to slightly higher. Farmers still have the flexibility to cut out P and K applications pretty quickly if they feel like they need to, he said.

"It will be interesting to see if the recent rally in corn and beans have any effect on fertilizer," he said. "They seem to track pretty closely."

Retail fertilizers are lower compared to a year earlier. All fertilizers are now double-digits lower.

10-34-0 is 14% lower while UAN32 is 16% less expensive and MAP is 17% lower. DAP is 18% lower and UAN28 is 19% less expensive from a year previous.

In addition, both urea and anhydrous are 20% lower and potash is 27% less expensive.

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/BAS)

© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.