DTN Retail Fertilizer Trends

OMAHA (DTN) -- Average fertilizer prices continued on their stable path the fifth week of May 2016, according to retailers surveyed by DTN. Prices have held steady for eight consecutive weeks now.

All eight fertilizers were lower compared to last month. But, as has been the case in recent weeks, none of these fertilizers saw a significant drop. DAP had an average price of $473 per ton, MAP $499/ton, potash $363/ton, urea $375/ton, 10-34-0 $559/ton, anhydrous $579/ton, UAN28 $268/ton and UAN32 $313/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.41/lb.N, anhydrous $0.35/lb.N, UAN28 $0.48/lb.N and UAN32 $0.49/lb.N.

Consolidation has been a common theme throughout the seed and ag chemical industry recently with the announcement of Dow Chemical and DuPont's plans to merge and China National Chemical Corp.'s (ChemChina) plans to buy Swiss-based Syngenta.

The fertilizer industry also seems to have caught consolidation fever, as evidenced by merger talks between CF Industries and OCI Nitrogen.

However, as has frequently happened in merger talks between seed and ag chemical companies, plans fell through when CF Industries and OCI Nitrogen called off their planned $8 billion fertilizer company merger after the deal did not meet U.S. tax rules, according to Dow Jones.

The two companies said in a joint statement they were unable to come up with a structure for the deal to combine CF with OSI's distributions operations. The companies cited a tougher regulatory and commercial environment, Dow Jones reported.

The failed fertilizer deal would have created a global nitrogen fertilizer giant. CF is already one of the world's largest manufacturers and distributors of nitrogen fertilizer while OCI, which operates in Egypt, Algeria, the Netherlands and the U.S., makes natural-gas based fertilizer and industry chemicals.

The deal would have also allowed CF to gain control of OCI's new nitrogen fertilizer plant located in Wever, Iowa. OCI Chief Executive Nassef Sawiris told Dow Jones he hoped to explore "alternative ways of collaboration or structures" with CF Industries in the future.

Despite the holding pattern in retail fertilizer prices in recent weeks, all fertilizers remain double-digits lower compared to a year ago.

10-34-0 is 14% lower while UAN32 is 16% less expensive and both DAP and MAP are 17% lower. Urea, anhydrous and UAN28 are all 18% lower from a year previous.

In addition, potash is 26% 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 prices in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to November 2008 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
June 1-5 2015	570	598	491	461
June 29-July 3 2015	570	596	490	469
July 27-31 2015	569	594	487	469
Aug 24-28 2015	567	586	476	447
Sept 21-25 2015	562	575	454	428
Oct 19-23 2015	547	562	435	413
Nov 16-20 2015	545	559	424	403
Dec 14-18 2015	532	544	410	392
Jan 11-15 2016	495	521	391	381
Feb 8-12 2016	479	499	378	369
Mar 7-11 2016	477	494	372	378
Apr 4-8 2016	480	504	369	387
May 2-6 2016	475	502	366	385
May 30-June 3 2016	473	499	363	375
LIQUID
Date Range	10-34-0	ANHYD	UAN28	UAN32
June 1-5 2015	650	710	331	371
June 29-July 3 2015	642	705	330	369
July 27-31 2015	636	689	324	354
Aug 24-28 2015	609	667	309	350
Sept 21-25 2015	589	646	297	343
Oct 19-23 2015	582	637	291	334
Nov 16-20 2015	579	629	287	332
Dec 14-18 2015	571	612	279	331
Jan 11-15 2016	572	581	272	319
Feb 8-12 2016	569	551	261	303
Mar 7-11 2016	562	541	262	312
Apr 4-8 2016	561	586	272	315
May 2-6 2016	560	589	274	321
May 30-June 3 2016	559	579	268	313

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

(CZ)

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