DTN Retail Fertilizer Trends

By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- According to retail fertilizer prices tracked by DTN for the second week of May 2018, prices continue to be mostly higher. There appeared to be signs over the last few months that prices may be turning lower, with multiple fertilizers having lower prices, but so far this trend has not developed.

Like last week, seven of the eight major fertilizer were higher in price compared to last month, although none were up a substantial amount. MAP had an average price of $505/ton, potash $354/ton, 10-34-0 $439/ton, anhydrous $510/ton, UAN28 $241/ton and UAN32 $276/ton.

The remaining fertilizer was slightly lower in price compared to the previous month. DAP had an average price of $483/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

PROPOSED SAFETY MEASURES RESCINDED

On May 17, Environmental Protection Agency (EPA) administrator Scott Pruitt rescinded a package of safety measures proposed for the nation's chemical plants after a deadly blast at a Texas fertilizer facility in April of 2013, the Associated Press reported.

Pruitt revised a slate of rules from the Obama administration on safety and risk management at 12,500 U.S. facilities. A chemical manufacturing group welcomed the changes while Environment Working Group spokesman Alex Formuzis called them a "hollowing out" of the original safety upgrades.

Pruitt's changes eliminate several of the original requirements concerning safety training, accident prevention and accident investigations. The alterations also would remove a requirement that members of the public who ask the plants should receive information about any chemical risk and community emergency plans.

The change "would make it harder for those living near these plants to get basic information" about any danger posed, said Eric Schaeffer, director of the Washington-based Environmental Integrity Project nonprofit.

Pruitt said in a statement the revised slate of proposed rules reduce unnecessary regulatory burdens.

"Accident prevention is a top priority at EPA, and this proposed rule will ensure proper emergency planning and continue the trend of few significant accidents involving chemicals," Pruitt said.

The rules were prompted by the 2013 fertilizer facility explosion in West, Texas, which killed 15 people, including 10 volunteer firefighters.

As the blaze engulfed the facility, firefighters rushed in to try to contain the fire. According to the state fire marshal's report, the firefighters began to back out only moments before the stored ammonium nitrate exploded.

SIX OF EIGHT HIGHER THAN YEAR AGO

Six of the eight major fertilizers are now higher compared to last year with prices pushing higher in recent months. Both 10-34-0 and anhydrous are now up 1%, potash is 4% higher, urea is 5% more expensive, MAP is 7% higher and DAP is 11% more expensive compared to last year.

The remaining two fertilizers are lower in price compared to a year prior. UAN32 is 2% lower while UAN28 is 3% less expensive, looking back a 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 prices 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 him on Twitter: www.twitter.com/RussQuinnDTN

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