OMAHA (DTN) -- Retail fertilizer prices tracked by DTN for the first week of October continue to show the slow and steady price increases, a pattern that's been in place for several months. For the fourth week in a row, all eight major fertilizer prices are higher compared to a month earlier.
As has also been the case the last four weeks, one fertilizer had a substantial move higher. Urea prices are 6% higher compared to the first week of September. The nitrogen fertilizer had an average price of $389/ton.
At $501/ton, it's the first time since DAP prices have crossed the $500/ton mark since the third week of December in 2015. At that time the price was at $519/ton.
The remaining six fertilizers were all higher in price than last month, but the price moves were less noteworthy. MAP had an average price $523/ton, potash $364/ton, 10-34-0 $451/ton, anhydrous $488/ton, UAN28 $237/ton and UAN32 $279/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.42/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.44/lb.N.
Higher fertilizer prices are catching the attention of nearly everyone this fall. In a post from the Agricultural Economic Insights newsletter, David Widmar points out most retail fertilizer prices have been higher in recent months.
Using fertilizer prices from the USDA Illinois Production Costs report, he notes September prices were higher than in the spring for most fertilizers, with urea and DAP up 6% in recent months, while UAN28 and potash prices are both 2% higher.
"Anhydrous ammonia prices, so far have been contrarian and turned lower since spring, down 4%," Widmar wrote.
The story in nitrogen has been the urea/anhydrous ammonia price relationship with urea prices rising and anhydrous prices falling. The urea/anhydrous ammonia price relationship is, on average, usually at a ratio of 1.21. In other words, the price of a pound of nitrogen from urea is typically 1.21 times that of the price from anhydrous ammonia, he wrote.
This spring, the price relationship was at 1.24, very close to the average. Currently, the price relationship is at 1.37. Producers that have the option of using different sources of nitrogen might find anhydrous ammonia more attractive at current prices, he wrote.
"Historically, an uptick in the price relationship is typically short-lived," he wrote. "This is to say that it's not clear how long urea will be relatively higher-priced. The price relationship could change with urea falling or anhydrous ammonia prices increasing."
All eight of the major fertilizers are now higher compared to last year. Potash is 5% higher, 10-34-0 is 9% more expensive, UAN28 is 14% higher, UAN32 is now 15% more expensive, MAP is 16% higher, DAP is 18% more expensive, urea is 20% higher and anhydrous is now 22% more 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 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.
This week in the DTN 360 Poll question we are asking a question about what your plan is for fall fertilizer applications. If you would like to answer the question, visit a DTN website.
|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|
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