OMAHA (DTN) -- After months of only slight declines, average retail fertilizer prices finally appeared to be dropping substantially the second week of August 2016, according to fertilizer retailers surveyed by DTN. While all fertilizer prices were lower, the average prices of several fertilizers were significantly lower than a month earlier.
Anhydrous is now 6% lower compared to the previous month. The nitrogen fertilizer had an average price of $522 per ton. Both urea and UAN28 were 5% lower compared to the second week of July. Urea had an average price of $345/ton and UAN28 $249/ton.
The remaining five fertilizers were lower in price compared to the month earlier, but these moves were not significant. DAP had an average price of $453/ton, MAP $482/ton, potash $344/ton, 10-34-0 was at $528/ton and UAN28 $249/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.32/lb.N, UAN28 $0.44/lb.N and UAN32 $0.47/lb.N.
The significantly lower retail fertilizer prices are not a surprise, according to retailers. Most appear content to wait for the low in the market to occur before they release fall fill prices.
Rob Fritz, senior agronomist for Hefty Seeds based in Baltic, South Dakota, wrote in the Aug. 9 edition of the Fertilizer and Equipment Gazette email newsletter that fall fertilizer prices could be lower.
"From all indicators, it looks like fertilizer will be lower and possibly much lower than last season," Fritz wrote.
Urea prices are already "much lower" than the previous year, he said. This, in turn will pressure the liquid nitrogen market to drop, so he is expecting to see big moves lower.
Fritz added that phosphorus and potash prices are currently fairly flat at this time. However, these fertilizers too could have lower fall fill prices in the coming weeks.
Retail fertilizers are lower compared to a year earlier. All fertilizers are now double-digits lower.
Both UAN32 and 10-34-0 are 16% lower, MAP is 18% less expensive and DAP is 20% lower. UAN28 is 21% lower, anhydrous is 23% less expensive, urea is 25% lower and potash is 28% less expensive compared to last year.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|Aug 10-14 2015||568||591||479||457|
|Sep 7-11 2015||563||580||467||433|
|Oct 5-9 2015||548||564||446||418|
|Nov 2-6 2015||546||560||430||405|
|Nov 30-Dec 4 2015||541||559||421||400|
|Dec 28-Jan 1 2016||494||531||398||383|
|Jan 25-29 2016||495||515||391||380|
|Feb 22-26 2016||477||492||373||371|
|Mar 21-25 2016||475||501||371||390|
|Apr 18-22 2016||477||502||366||388|
|May 16-20 2016||476||501||365||384|
|June 13-17 2016||469||496||359||367|
|July 11-15 2016||467||496||358||360|
|Aug 8-12 2016||453||482||344||345|
|Aug 10-14 2015||631||677||315||356|
|Sep 7-11 2015||594||656||301||346|
|Oct 5-9 2015||584||639||294||338|
|Nov 2-6 2015||583||633||291||332|
|Nov 30-Dec 4 2015||578||627||286||332|
|Dec 28-Jan 1 2016||570||590||273||317|
|Jan 25-29 2016||571||569||271||317|
|Feb 22-26 2016||566||536||260||309|
|Mar 21-25 2016||561||569||276||312|
|Apr 18-22 2016||561||588||274||322|
|May 16-20 2016||558||588||274||321|
|June 13-17 2016||555||566||266||305|
|July 11-15 2016||538||547||266||306|
|Aug 8-12 2016||528||522||249||299|
Russ Quinn can be reached at email@example.com
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.