DTN Retail Fertilizer Trends

OMAHA (DTN) -- Most average retail fertilizer prices continued to be less expensive than last month during the first week of July 2022, according to fertilizer sellers surveyed by DTN. This lower trend has been in place for six weeks now.

All but one of the eight major fertilizers were lower compared to last month, with only one fertilizer down substantially. DTN designates a significant move as anything 5% or more.

Urea was again 11% lower compared to last month. The nitrogen fertilizer had an average price of $866 per ton.

DAP had an average price of $1,038/ton, MAP $1,053/ton, 10-34-0 $904/ton, anhydrous $1,466/ton, UAN28 $609/ton and UAN28 $702/ton.

One fertilizer was just slightly more expensive compared to last month. Potash had an average price of $885/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.94/lb.N, anhydrous $0.89/lb.N, UAN28 $1.09/lb.N and UAN32 $1.10/lb.N.

Declining crop prices are pushing fertilizer prices lower. This, in turn, has dragged fertilizer companies' stock prices lower after nearly two full years of higher prices, according to Dow Jones.

Investors and analysts are deciding if fertilizer stocks got swept up in the broad market selloff and could still reverse course, or if they were bid up too high in the panic after Russia invaded Ukraine and have further to fall.

"I'd be real careful with the fertilizer stocks right now," Matthew Tuttle, chief executive of Tuttle Capital Management told Dow Jones.

In mid-April, Mosaic and CF were up 99% and 55% for the year. While they have tumbled since, they remain among the best performers in the S&P 500 this year.

Dow Jones notes that Mosaic's stock has added 15% and CF's stock has gained 20% in 2022, compared with an 18% decline in the broader stock index. Other fertilizer companies have seen similar arcs.

On the retail level, most fertilizer prices continue to be considerably higher than one year earlier.

MAP is 44% more expensive, 10-34-0 is 45% higher, DAP is 51% more expensive, urea is 58% higher, UAN28 is 64% more expensive, UAN32 is 67% higher, potash is 80% more expensive and anhydrous is 100% higher compared to last year.

DTN gathers fertilizer price bids from agriculture retailers each week to compile the DTN Fertilizer Index. DTN first began reporting data in November 2008.

The Purdue University/CME Group Ag Economy Barometer shows farmers continue to be concerned about rising input prices and the availability of these products. You can read it here: https://www.dtnpf.com/….

Russ Quinn can be reached at Russ.Quinn@dtn.com

Follow him on Twitter @RussQuinnDTN

(c) Copyright 2022 DTN, LLC. All rights reserved.