DTN Retail Fertilizer Trends

Most Retail Fertilizer Prices Higher in Last Week of 2017

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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Just one fertilizer was lower in price from the previous month. UAN32 had an average retail price of $254 per ton the fourth week of December, 6% lower than a month earlier. (DTN chart)

OMAHA (DTN) -- Average retail prices for most fertilizers continued to move higher as 2017 drew to a close, according to retailers surveyed by DTN.

Seven of the eight major fertilizers were higher the fourth week of December compared to a month earlier. Anhydrous was 12% more expensive compared to last month and had an average price of $468 per ton. MAP was 6% higher, as well, with an average price of $488/ton.

The remaining five fertilizers were higher compared to the prior month, though none were up by a significant amount. DAP had an average price of $448/ton, potash $344/ton, urea $348/ton, 10-34-0 $407/ton and UAN28 $216/ton.

Just one fertilizer was lower from the previous month. UAN32 was 6% lower compared to last month. The nitrogen fertilizer had an average price of $254/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.29/lb.N, UAN28 $0.39/lb.N and UAN32 $0.40/lb.N.

A new year brings new acquisitions in the Midwest retail fertilizer industry. South Dakota Wheat Growers, based in Aberdeen, South Dakota, announced on Tuesday that it has purchased a 40,000 ton dry fertilizer facility located in Kimball, which had been previously owned by Gavilon Fertilizer, LLC.

According to a company news release, the Kimball plant will become the largest-capacity dry fertilizer plant in the Wheat Growers cooperative. The company currently has six hub fertilizer plants located in Bath, Huron, Kennebec, McLaughlin, Oakes and Wolsey, which was the largest facility with 31,200 tons of dry fertilizer storage.

This acquisition comes less than a month before Wheat Growers, a cooperative with 40 locations, forms a new cooperative by merging with North Central Farmers Elevator, a 22-location cooperative headquartered in Ipswich.

"As we anticipate becoming a new cooperative on Feb. 1, the addition of this state-of-the-art fertilizer plant allows us to very efficiently provide fertilizer to our farmers," said Wheat Growers CEO Chris Pearson.

"It also opens the door to new opportunities in our South region by significantly increasing our storage capacity and expanding product availability to producers along the I-90 corridor. This will be key for our producers in that region."

The Kimball plant also includes access to a 110-car-unit loop-track, plus high-speed automated fertilizer loadout and storage capabilities.

Five fertilizers are now higher compared to last year. Anhydrous is 1% more expensive, both DAP and urea are 4% higher, potash is 7% more expensive and MAP is now 10% higher.

The remaining three fertilizers are still lower compared to a year prior. Both UAN28 and UAN32 are 1% lower, while 10-34-0 is 9% less expensive.

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.

DTN's average of retail fertilizer prices from a month earlier ($ per ton):

DRY
Date Range DAP MAP POTASH UREA
Dec 26-30 2016 431 443 321 336
Jan 23-27 2017 429 443 322 347
Feb 20-24 2017 433 452 332 359
Mar 20-24 2017 438 464 338 356
Apr 17-21 2017 438 466 339 352
May 15-19 2017 437 471 340 350
Jun 12-16 2017 437 470 341 338
Jul 10-14 2017 436 467 340 321
Aug 7-11 2017 434 462 339 311
Sep 4-8 2017 431 458 338 302
Oct 2-6 2017 425 453 348 323
Oct 27-Nov 3 2017 434 455 348 330
Nov 27-Dec 1 2017 435 460 342 340
Dec 25-29 2017 448 488 344 348
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
Dec 26-30 2016 437 466 217 254
Jan 23-27 2017 436 480 235 268
Feb 20-24 2017 440 490 241 276
Mar 20-24 2017 441 507 248 280
Apr 17-21 2017 437 509 247 280
May 15-19 2017 436 510 248 283
Jun 12-16 2017 435 500 246 278
Jul 10-14 2017 431 451 235 268
Aug 7-11 2017 440 419 224 258
Sep 4-8 2017 418 413 215 248
Oct 2-6 2017 413 399 208 243
Oct 27-Nov 3 2017 405 401 208 262
Nov 27-Dec 1 2017 403 417 216 271
Dec 25-29 2017 407 468 216 254

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

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(BAS/AG)

Russ Quinn