OMAHA (DTN) -- Retail fertilizer prices continue to drift slowly lower, according to prices tracked by DTN for the second week of December 2022. This has been the general trend in prices over the last several months.
Of the eight major fertilizers, seven were slightly lower. DTN designates a significant move as anything 5% or more.
DAP had an average price of $920/ton, MAP $950/ton, potash $819/ton, urea $784/ton, 10-34-0 $751/ton, anhydrous $1,415/ton and UAN28 $$581/ton.
The remaining fertilizer, UAN32, was just slightly more expensive than last month with an average price of $681/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.85/lb.N, anhydrous $0.86/lb.N, UAN28 $1.04/lb.N and UAN32 $1.07/lb.N.
A CoBank report titled "2023 The Year Ahead: Forces That Will Shape the U.S. Rural Economy", examines the outlook for agriculture into the next year.
At the top of the list of challenges is lower forecasted farm income. The U.S. ag economy has fared well in recent years, posting new record highs for net farm income in 2021 and then again in 2022.
CoBank says this might change in 2023 amid skyrocketing production costs, steeply higher interest rates, an elevated dollar and weakening domestic and export demand caused by declining real incomes amidst spiraling inflation.
The report also touched a bit on the outlook for fertilizer in 2023. Wholesale fertilizer costs look to remain high during the first half of 2023 as cooperatives not only absorb high barge and rail costs, but also compete with the export markets for limited supply of nutrients.
Some 70% of the European fertilizer production was offline during the third quarter 2022 as the region dealt with record-high natural gas prices.
"Fertilizer prices will likely begin and end 2023 at elevated levels, minimizing the opportunities for retailers to capture the same level of carry margin that was available during 2021/2022," the report said.
The entire report can be read at https://www.cobank.com/….
Most retail fertilizer prices continue to be higher in price than one year earlier, although two are now slightly lower.
10-34-0 is now 1% lower while urea is 12% less expensive than one year ago. UAN28 is 1% higher, both anhydrous and UAN32 are 3% more expensive, MAP is 4% higher, potash is 5% more expensive and DAP is 10% 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.
High inputs prices, including fertilizers, remain on farmers' list of concerns, according to the most recent edition of the Purdue University/CME Group Ag Economy Barometer. You can read it here: https://www.dtnpf.com/….
Dry |
Date Range | DAP | MAP | POTASH | UREA |
Dec 6-10 2021 | 840 | 919 | 778 | 887 |
Jan 3-7 2022 | 863 | 931 | 807 | 913 |
Jan 31-Feb 4 2022 | 877 | 933 | 813 | 905 |
Feb 28-Mar 4 2022 | 879 | 937 | 815 | 887 |
Mar 28-Apr 1 2022 | 1033 | 1045 | 868 | Apr 25-29 2022 | 1049 | 1082 | 881 | 1004 |
May 23-27 2022 | 1056 | 1082 | 879 | 989 |
Jun 20-Jun 24 2022 | 1040 | 1058 | 885 | 902 |
Jul 18-22 2022 | 1007 | 1043 | 887 | 836 |
Aug 15-19 2022 | 978 | 1026 | 881 | 807 |
Sep 12-16 2022 | 952 | 1009 | 877 | 808 |
Oct 10-14 2022 | 925 | 986 | 863 | 824 |
Nov 7-11 2022 | 931 | 980 | 853 | 812 |
Dec 5-Dec 9 2022 | 920 | 950 | 819 | 784 |
| | | | |
Liquid |
Date Range | 10-34-0 | ANHYD | UAN28 | UAN32 |
Dec 6-10 2021 | 756 | 1372 | 577 | 661 |
Jan 3-7 2022 | 795 | 1430 | 584 | 679 |
Jan 31-Feb 4 2022 | 826 | 1487 | 600 | 699 |
Feb 28-Mar 4 2022 | 837 | 1487 | 603 | 703 |
Mar 28-Apr 1 2022 | 896 | 1526 | 637 | 711 |
Apr 25-29 2022 | 906 | 1534 | 631 | 730 |
May 23-27 2022 | 906 | 1531 | 634 | 731 |
Jun 20-Jun 24 2022 | 905 | 1497 | 616 | 716 |
Jul 18-22 2022 | 894 | 1431 | 598 | 696 |
Aug 15-19 2022 | 878 | 1336 | 576 | 676 |
Sep 12-16 2022 | 861 | 1369 | 578 | 665 |
Oct 10-14 2022 | 759 | 1417 | 576 | 670 |
Nov 7-11 2022 | 758 | 1434 | 582 | 680 |
Dec 5-Dec 9 2022 | 751 | 1415 | 581 | 681 |
Russ Quinn can be reached at Russ.Quinn@dtn.com
Follow him on Twitter @RussQuinnDTN
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