DTN Retail Fertilizer Trends

OMAHA (DTN) -- Retail fertilizer prices tracked by DTN for the first week of September 2022 show most fertilizer prices continue to fall. However, the five-week streak of declines in all eight major fertilizers snapped, as one fertilizer price inched higher.

No fertilizers were noticeably lower or higher. DTN designates a significant move as anything 5% or more.

Seven of the eight major fertilizers were just slightly lower. DAP had an average price of $952 per ton, MAP $1,009/ton, potash $878/ton, urea $800/ton, 10-34-0 $866/ton, anhydrous $1,357/ton and UAN32 $658/ton.

UAN28 was the only fertilizer with a higher price, and it was just slightly more expensive. The nitrogen fertilizer had an average price of $579/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.87/lb.N, anhydrous $0.83/lb.N, UAN28 $1.03/lb.N and UAN32 $1.03/lb.N.

U.S. farmers may see some benefit to a squeeze in natural gas availability with prices in Europe surging in response to halted flows through the Nord Stream pipe, Dow Jones reported. Albert Chu of Newton Investment Management said while low natural gas supplies in Europe will be limited to only heating and electricity, ample natural gas supplies in the U.S. will allow for fertilizer production.

"We have enough molecules to go around," Chu said.

As a result, crops in the U.S. will have the potential to yield better than their European counterparts. Without fertilizers, crop yields likely will be considerably lower, he said.

Despite lower prices in recent months, prices for all fertilizers continue to be considerably higher than one year earlier.

MAP is 33% more expensive, DAP is 36% higher, 10-34-0 is 37% more expensive, urea is 43% higher, potash is 53% more expensive, both UAN28 and UAN32 are 56% higher and anhydrous is 81% more expensive 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 Russia/Ukraine military conflict will continue to put much uncertainty in the global fertilizer markets in the coming month, according to Rabobank. You can read it here: https://www.dtnpf.com/….

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

Follow him on Twitter @RussQuinnDTN

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