DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- For a second straight week retail fertilizer prices are showing some movement after months of extremely steady prices, according to retail fertilizer prices tracked by DTN for the fourth week of June 2016.

All eight of the major fertilizer were lower in price compared to the previous month. The only fertilizer to show a significant move was UAN32. The liquid nitrogen fertilizer was down 5% compared to the previous month and averaged $305/ton.

The remaining seven fertilizers were lower in price from last month, but the move was fairly minor. DAP averaged $470/ton, MAP $495/ton, potash $358/ton, urea $366/ton, 10-34-0 $554/ton, anhydrous $567/ton and UAN28 $265/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 $0.47/lb.N and UAN32 $0.48/lb.N.

With the calendar set to change to July later this week, some farmers are considering locking in fertilizer for the upcoming 2017 growing season. Rob Fritz, senior agronomist for Hefty Seeds based in Baltic, South Dakota, wrote in the company's Equipment and Fertilizer Gazette last week that such moves may be premature.

"I have been getting reports of people trying to lock in 2017 urea," Fritz wrote. "It better be priced pretty low because we can get urea out of the Twin Cities at $230/ton FOB (wholesale price), and the expectation is we have not stopped the dropping yet."

Fritz added that if the markets see continued higher corn and soybean prices, fertilizer prices could see some market bounce, but added that would occur most likely in the fall sales time period.

Phosphorus (P) and potash (K) are holding fairly steady on lower inventories. They expect to get an idea on where these fertilizers will be on price in early August, he said.

According to DTN's surveys, all retail fertilizers remain double-digits lower than a year ago.

10-34-0 is 14% lower while MAP is 17% less expensive and DAP, anhydrous and UAN32 are all 18% lower. UAN28 is 20% lower, urea is 22% lower and potash is 27% less expensive compared to last 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

(Ps/SK)

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