DTN Retail Fertilizer Trends

OMAHA (DTN) -- Average retail fertilizer prices continued to slowly climb the first week of April 2024, according to sellers surveyed by DTN. For the second consecutive week, prices for all eight major fertilizers were up from a month ago.

Despite the increases across the board, the price of only one fertilizer jumped significantly, which DTN designates as anything 5% or more. UAN28 was 5% higher than a month ago, with an average retail price of $362 per ton.

The remaining seven fertilizers were slightly more expensive compared to last month. DAP had an average price of $780 per ton, MAP $828/ton, potash $514/ton, urea $577/ton, 10-34-0 $633/ton, anhydrous $794/ton and UAN32 $405/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.63/lb.N, anhydrous $0.48/lb.N, UAN28 $0.65/lb.N and UAN32 $0.63/lb.N.

USDA's Economic Research Service (ERS) recently published a report detailing the significance of fertilizer costs in corn production, according to an article from fertilizerdaily.com (https://www.fertilizerdaily.com/…). Fertilizer represents the largest variable expense, according to the report.

USDA ERS reported the average fertilizer cost from 2006 to 2021 was approximately $125 per acre, without adjusting for inflation. This figure saw a sharp increase beginning in 2022, reaching $225.78 per acre, before declining to an estimated $186.73 per acre in 2023.

"This trend indicates a significant 89% increase in costs from 2021 to 2022, followed by a 17% decrease from 2022 to 2023," according to the article.

Fertilizer expenses made up about 22% of the total per-acre corn production cost from 2006 to 2016. This percentage dropped to an average of 17% from 2017 to 2021, as fertilizer prices were historically low.

However, the increase in prices in 2022 elevated fertilizer costs to 24% of total costs, though this number was lower than the peak, which was seen at 26% in 2008.

Most fertilizer prices are lower compared to one year ago, but one is now slightly higher. The price of MAP is 2% compared to a year.

Prices for the remaining fertilizers are lower. DAP is 5% less expensive, urea is 8% lower, 10-34-0 is 15% less expensive, UAN28 is 14% lower, potash and UAN32 are 20% less expensive, and anhydrous is 21% lower compared to a year ago.

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

In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….

Fertilizer analysts believe there could be some UAN supply disruptions this spring with the Francis Scott Key bridge collapse in Baltimore. You can read about it here: https://www.dtnpf.com/….

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

Follow him on social platform X @RussQuinnDTN.

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