DTN Retail Fertilizer Trends

OMAHA (DTN) -- Retail fertilizer prices continue to be mostly lower, although DAP and MAP prices are notable exceptions, according to prices tracked by DTN for the fourth week of August 2020.

As has been the case for the last couple of weeks, six fertilizers were lower in price compared to last month. None were down a significant amount, which DTN designates as 5% or more. Potash has an average price of $352/ton, down $6; urea $355/ton, down less than $1; 10-34-0 $464/ton, down $1; anhydrous $442/ton, down $12; UAN28 $219/ton, down $4; and UAN32 $258/ton, down $4.

Two fertilizers, DAP and MAP, were higher in price than last month. DAP was up significantly, or 5%, with an average price of $430/ton. That's an increase of $20 per ton. MAP was up $6/ton with an average price of $435/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.27/lb.N, UAN28 $0.39/lb.N and UAN32 $0.40/lb.N.

One reason many farmers will try to buy fertilizer early is to hedge against the risk of price increases in the retail fertilizer market. John Oehlerking, a farmer from Elmwood, Neb., said he likes to know that he will have one major input cost covered and will do more price locking as the fertilizer pricing becomes available.

"This gives me a lot better chance of success," Oehlerking told DTN. "Yes, there have been years where that has worked against me but not very often."

Oehlerking said he has already locked in MAP at $375/ton with payment in full. He could have locked it in for $20/ton more without the full payment, but he opted for the lower price. He was also able to lock in a low interest rate with the supplier, he said.

He has not locked in any anhydrous. He applies the nitrogen fertilizer in the spring on his southeastern Nebraska farm, and the anhydrous contract for spring applications is not available yet, he said.

In addition, he has already marketed some corn and soybeans for the 2021 crop year as price increase opportunities have arisen, he said. His plan is to do more as the year progresses and as more inputs are purchased.

"The corn price may increase and fertilizer will probably follow rapidly," he said.

Retail fertilizer prices continue to be considerably lower in price from a year ago. Anhydrous is 16% lower, both urea and UAN28 are 14% less expensive, DAP is 13% lower, MAP is 12% less expensive, UAN32 is 11% lower, potash is 9% less expensive and 10-34-0 is 1% lower from last year at this time.

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 price 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.

DRY
Date Range	DAP	MAP	POTASH	UREA
Aug 26-30 2019	491	494	387	412
Sep 23-27, 2019	479	475	384	404
Oct 21-25, 2019	465	473	383	404
Nov 18-22 2019	456	466	381	387
Dec 16-20 2019	444	460	378	377
Jan 13-17 2020	433	444	375	357
Feb 10-14 2020	413	435	373	361
Mar 9-13 2020	407	432	370	377
Apr 6-10 2020	409	434	370	382
May 4-8 2020	413	433	370	388
Jun 1-5 2020	407	431	364	373
Jun 29-Jul 3 2020	406	427	361	357
Jul 27-31 2020	410	429	358	355
Aug 24-28 2020	430	435	352	355
Liquid
Date Range	10-34-0	ANHYD	UAN28	UAN32
Aug 26-30 2019	470	528	256	290
Sep 23-27, 2019	471	511	254	289
Oct 21-25, 2019	471	507	251	291
Nov 18-22 2019	472	496	245	284
Dec 16-20 2019	469	487	239	276
Jan 13-17 2020	470	487	237	275
Feb 10-14 2020	464	490	235	277
Mar 9-13 2020	466	490	235	278
Apr 6-10 2020	468	492	235	278
May 4-8 2020	468	492	237	280
Jun 1-5 2020	468	475	236	276
Jun 29-Jul 3 2020	468	461	233	272
Jul 27-31 2020	465	454	223	262
Aug 24-28 2020	464	442	219	258

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

Follow him on Twitter @RussQuinnDTN

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