DTN Fertilizer Outlook

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices continued to hold steady the second week of May 2017, according to fertilizer retailers surveyed by DTN.

Of the eight major fertilizers, five were slightly lower in price compared to a month earlier. These were DAP, urea, 10-34-0, UAN28 and UAN32. DAP had an average price of $437 per ton, urea $351/ton, 10-34-0 $437/ton, UAN28 $247/ton and UAN32 $280/ton.

The remaining three fertilizers were slightly higher in price from last month. MAP had an average price of $466/ton, potash $340/ton and anhydrous $508/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.44/lb.N.

Corn planting has mostly wrapped up in many Corn Belt locations. Bob Spratt, manager of LeRoy Fertilizer Services in LeRoy, Illinois, said most of the corn is planted in central Illinois and farmers there are now working on planting soybeans.

Wet weather this planting season has slowed fieldwork some and could also have a negative effect on the recently planted corn, he said.

"We escaped the heavier rains the past couple of weeks, and I would say the lack of sun and warmth has hurt the crop more than too much water," Spratt told DTN.

Spratt said that after a run higher in mid-winter, retail fertilizer prices have flattened out and have remained that way for several months now. As for what direction fertilizer prices could be headed next, he said the answer is not very clear.

"I am really in the dark about (fertilizer price) direction," he said. "If someone can figure out what the price of corn is going to be, that's the direction fertilizer will go."

Retail fertilizers are lower compared to a year earlier. Half of the eight major fertilizers are still double digits lower.

10-34-0 is 22% lower from a year ago, anhydrous is 14% less expensive, UAN32 is 13% lower and UAN28 is 10% less expensive. Urea is 9% lower, DAP is 8% less expensive and both potash and MAP are 7% lower compared to 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 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

(AG/SK)

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