DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- It was another week of extremely steady retail fertilizer prices the fourth week of May 2017, according to fertilizer retailers surveyed by DTN. No fertilizer prices were significantly higher or lower from the previous month.

Of the eight major fertilizer, five were slightly lower in price compared to a month earlier. These were DAP, urea, 10-34-0, anhydrous and UAN32.

DAP had an average price of $436 per ton, urea $343/ton, 10-34-0 $436/ton, anhydrous $503/ton and UAN32 $280/ton.

The remaining three fertilizers were slightly higher in price from last month, but again, none were up a sizable amount. MAP had an average price of $471/ton, potash $340/ton and UAN28 $249/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.37/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.44/lb.N.

Farmers across the Corn Belt are beginning to sidedress nitrogen to their young corn plants, a practice that has become more and more popular in recent years. The nitrogen is fed to the plants just when it is needed most, allowing for better yields and less nitrogen lost.

Steven Fellure, a farmer from Attica, Indiana, said he has been sidedressing since the 1970s. He started sidedressing with anhydrous, and then about three years ago, he switched over to using UAN28.

He sidedresses some of his corn acres, but this practice takes some additional time, something of which he doesn't always have a plentiful supply.

"I have cattle so have hay and trucks and wheat as well," Fellure said. "I have lots to squeeze in."

Ben Riensche, a corn and soybean farmer from Jessup, Iowa, said he believes there are two main factors for why farmers have embraced sidedressing nitrogen beyond the obvious positive agronomy reasons.

One factor would be the major advances in the technology used to apply and keep an eye on the nitrogen applied.

The better equipment allows farmers to have several different options to apply the nitrogen later when the plant really needs it. The nitrogen management tools offer farmers a way to monitor how much they have applied and how much more is needed, he said.

"There are many new tools to put on in-season nitrogen in several different forms today, which we didn't have years ago," Riensche said.

The other factor also pushing the sidedressing boom, according to Riensche, is farmers now have access to new supply of nitrogen from recently built sources, such as the Iowa Fertilizer Company nitrogen facility located in Wever, Iowa. Farmers like the flexibility of driving their own trucks to the terminal, purchasing their own nitrogen and applying it however they see fit.

The new sources of nitrogen have really changed how farmers buy and apply nitrogen on their farms, he said.

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 urea is down 10%. UAN28 is 9% less expensive, DAP is 8% lower, potash is 7% less expensive and MAP are 6% 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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