DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices continue to be relatively stable the third week of January 2017, according to retailers tracked by DTN. But, as was the case last week, more fertilizers are now trending higher than lower.

Six of the eight major fertilizers edged higher, although none moved by any considerable amount. MAP averaged $443 per ton, potash $324/ton, urea $346/ton, anhydrous $478/ton, UAN28 $235/ton and UAN32 $267/ton.

The remaining two fertilizers were slightly lower, but none of these moves to the low side were noteworthy. DAP averaged $430/ton and 10-34-0 was $437/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.29/lb.N, UAN28 $0.42/lb.N and UAN32 $0.42/lb.N.

As crop margins remain tight, farmers continue to try to become as efficient as possible, especially when it comes to their fertilizer needs. One such farmer is Jerry Demmer, who farms near Clarks Grove, Minnesota.

Demmer has been spending this winter analyzing inputs with these lower commodity prices. While he has already applied some N this fall, he will apply less nitrogen overall and put the nutrient on at three different application times.

"I have talked to my agronomist that works at the local co-op about farmers and fertilizer inputs, and he said they are not cutting back as one would think; they know they must maximize yield but be careful on what works and what does not," Demmer told DTN.

Demmer's home region of south-central Minnesota had an extremely wet September before harvest began. With all of the rain right before harvest, he thought maybe he would not get a window to do any fall fieldwork. However, the weather cooperated and he was able to get tillage completed as well as fertilizer applied, specifically both anhydrous and phosphorus (P) and potash (K).

"I think most farmers in this area apply P/K in the fall and try to get their nitrogen applied (in the fall) to beat the rush in the spring," he said.

Retail fertilizers are lower compared to a year earlier.

Urea is now down 9%, DAP is 13% less expensive, MAP is 15% lower and potash is 17% less expensive, UAN28 is down 14% and UAN32 is 16% lower. Anhydrous is 20% less expensive and 10-34-0 is 24% lower compared to a year prior.

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 2010 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 Russ Quinn on Twitter @RussQuinnDTN

(MZT/AG)

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