DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Some retail fertilizers -- mainly nitrogen fertilizers -- continued to see significant price decreases the fourth week of July 2017, according to fertilizer retailers surveyed by DTN. Once again, prices for all eight of the major fertilizers were lower compared to a month earlier.

Only two fertilizers had significant price drops compared to a month earlier. Anhydrous showed another large decrease in price, down 13% compared to last month. The nitrogen fertilizer had an average price of $423 per ton.

The other fertilizer with a sizeable retail price decline was urea. The nitrogen fertilizer was down 7% compared to last month and had an average price of $308 per ton.

Prices for the remaining six fertilizers were lower compared to last month, but not by significant amounts. DAP had an average price of $434/ton, MAP $462/ton, potash $338/ton, 10-34-0 $425/ton and UAN32 $265/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.34/lb.N, anhydrous $0.26/lb.N, UAN28 $0.41/lb.N and UAN32 $0.41/lb.N.

With retail fertilizer prices continuing to fall, some farmers may be willing to pre-purchase some fertilizer for next year's growing season. But others, such as Adam Casner, who farms near Carrolton, Missouri, prefer to wait until later in the year to start purchasing fertilizer.

Casner told DTN he hasn't given much thought to buying any fertilizer yet, especially with the grain market at its current level. If fertilizer prices stay low, he doesn't see much of a need to start pre-paying, he said.

"Cash is short this time of year on our farm," Casner said. "I don't see the need to currently lock in prices and be paying interest on a line of credit.

Casner said he probably won't get too interested in fertilizer "until the combine has been in the field for a couple weeks" this fall.

Prices for all retail fertilizers are lower compared to a year earlier. Five of the eight major fertilizers are double digits lower.

Both 10-34-0 and anhydrous are now 22% lower from a year ago while both urea and UAN32 are 13% lower and UAN28 is 11% less expensive. Both DAP and MAP are 6% lower while potash is 5% lower.

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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