OMAHA (DTN) -- Retail fertilizer prices continued their steep decline the second week of September 2016, according to fertilizer retailers surveyed by DTN. For the sixth week in a row, prices for fertilizers are considerably lower with all but one of the fertilizers having sizeable prices drops.
Leading the way lower this week is 10-34-0. The starter fertilizer is 10% lower compared to month earlier and had an average price of $474 per ton. UAN32 is 9% less expensive and has an average price of $272/ton. Potash is down 7% and has an average price of $320/ton.
Both urea and UAN28 were down 6% compared to the previous month. Urea had an average price of $324/ton and UAN28 $233/ton.
Both MAP and anhydrous were 5% less expensive, looking back to a month earlier. MAP had an average price of $458/ton and anhydrous $496/ton.
The one fertilizer with just a slight price decline compared to last month was DAP. The phosphorus fertilizer had an average price of $444/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.35/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.42/lb.N.
Last week, the boards of directors of Agrium, Inc. and Potash Corporation of Saskatchewan Inc. (PotashCorp) unanimously agreed to merge the two companies. This merger will create the largest crop nutrient company in the world, according to press releases from both companies.
A new parent company will be formed to own both companies, and the new company will be named prior to the transaction's closing. The new company will have 20,000 employees, operations and investments in 18 countries and have a pro forma enterprise value of $36 billion.
In addition, the new company would have net revenue of approximately $20.6 billion.
"Our merger creates a new premier Canadian-headquartered company that reflects our shared commitment to creating value and unlocking growth potential for shareholders," said PotashCorp President and Chief Executive Officer Jochen Tilk.
"This is a transformational merger that creates benefits and growth opportunities that neither company could achieve alone," Agrium President and Chief Executive Officer Chuck Magro said. "Combining our complementary assets will enable us to serve our customers more efficiently, deliver significant operating synergies and improve our cash flows to provide capital returns and invest in growth."
The new company will be led by Tilk, who will serve as executive chairman and Magro, who will serve as chief executive officer. Both will report to a new board of directors.
Following the closing of the transaction, the new company will have its registered head office in Saskatoon, with Canadian corporate offices in both Calgary and Saskatoon. The transaction is expected to be closed during mid-2017, subject to several different company and Canadian court approvals.
Retail fertilizer prices are lower compared to a year earlier. All fertilizers are now double-digits lower.
10-34-0 is now down 20% while DAP, MAP and UAN32 are all 21% lower. UAN28 is now 22% lower, anhydrous is 24% less expensive, urea is down 25% and potash is 31% lower compared to a year prior.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|Sept 14-18 2015||563||579||462||432|
|Oct 12-16 2015||547||564||440||418|
|Nov 9-13 2015||547||561||426||405|
|Dec 7-11 2015||534||555||417||397|
|Jan 4-8 2016||495||521||392||381|
|Feb 1-5 2016||488||502||381||370|
|Feb 29-Mar 4 2016||476||492||373||374|
|Mar 28-Apr 1 2016||478||501||370||386|
|Apr 25-29 2016||476||502||366||386|
|May 23-27 2016||476||501||365||381|
|June 20-24 2016||470||495||358||366|
|July 18-22 2016||464||493||357||357|
|Aug 15-19 2016||452||471||333||337|
|Sept 12-16 2016||444||458||320||324|
|Sept 14-18 2015||593||653||300||345|
|Oct 12-16 2015||584||640||295||338|
|Nov 9-13 2015||581||631||289||332|
|Dec 7-11 2015||575||625||284||330|
|Jan 4-8 2016||572||582||273||316|
|Feb 1-5 2016||549||555||263||305|
|Feb 29-Mar 4 2016||566||537||260||309|
|Mar 28-Apr 1 2016||561||580||268||315|
|Apr 25-29 2016||560||587||274||321|
|May 23-27 2016||560||587||274||321|
|June 20-24 2016||554||567||265||305|
|July 18-22 2016||546||546||260||304|
|Aug 15-19 2016||513||516||238||285|
|Sept 12-16 2016||474||496||233||272|
Russ Quinn can be reached at firstname.lastname@example.org
Follow Russ Quinn on Twitter @RussQuinnDTN
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.