OMAHA (DTN) -- Average retail prices for most fertilizers continued their lower trend during the week including the last two days of 2019 and first few days of 2020, according to retailers surveyed by DTN.
Seven of the eight major fertilizers were lower in price compared to a month earlier. This broke a streak of five weeks in which all eight were lower.
Only one fertilizer was down a significant amount. Urea was down 5% compared to last month and had an average price of $363 per ton.
Six fertilizers had slight price declines from the previous month. DAP had an average price of $438/ton, MAP $446/ton, potash $376/ton, anhydrous $487/ton, UAN28 $238/ton and UAN32 $273/ton.
The remaining fertilizer, 10-34-0, had a minor price increase from a month ago. The starter fertilizer had an average price of $470 per ton.
On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.43/lb.N.
As the calendar turns from 2019 to 2020, I thought it would be interesting to compare 2020 crop budgets to 2019 budgets and see where they had fertilizer prices pegged. Purdue University Extension's 2020 crop budget was put together in November 2019, so considering prices have continued to drop since then, the fertilizer price estimate could be even lower now.
The 2020 Purdue Crop Cost and Return Guide has fertilizer costs for corn production for average-productivity soils in continuous corn at $127 per acre, rotation corn at $116/acre, rotation soybeans $47/acre, wheat $74/acre and double-crop beans at $35/acre. This compares to the 2019 crop cost and return guide, done in December 2018, for average-productivity soils continuous corn at $137/acre, rotation corn at $126/acre, rotation soybeans at $51/acre, wheat at $81/acre and double-crop soybeans at $38/acre.
The difference between 2020 and 2019 crops budgets would be: for continuous corn -$10/acre, rotation corn -$10/acre, rotation soybeans -$4/acre, wheat -$7/acre and double-crop soybeans -$3/acre.
This is really not surprising given the direction of retail fertilizer prices during 2019. We saw price decreases during the year but no huge drops, so these slightly lower fertilizer estimates for the 2020 crop seems to be about right.
Retail fertilizers are mixed in price from a year ago. MAP is 16% lower, anhydrous is 15% less expensive, DAP is 14% lower, urea and UAN28 are both 11% less expensive, UAN32 is 10% lower and potash is 1% less expensive from last year at this time. In addition, 10-34-0 is 2% higher 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.
|Dec 31-Jan 4 2019||508||533||381||407|
|Jan 28-Feb 1 2019||513||536||384||407|
|Feb 25-Mar 01 2019||511||535||386||404|
|Mar 25-29 2019||509||534||385||401|
|Apr 22-26 2019||497||530||388||408|
|May 20-24 2019||497||527||392||428|
|Jun 17-21 2019||496||532||392||435|
|Jul 15-19, 2019||497||532||392||430|
|Aug 12-16 2019||493||503||387||413|
|Sep 9-13 2019||486||482||385||407|
|Oct 7-11, 2019||472||473||383||403|
|Nov 4-8 2019||462||471||384||396|
|Dec 2-6 2019||445||463||379||381|
|Dec 30-Jan 3 2020||438||446||376||363|
|Dec 31-Jan 4 2019||460||571||267||304|
|Jan 28-Feb 1 2019||468||585||271||313|
|Feb 25-Mar 01 2019||470||596||270||318|
|Mar 25-29 2019||470||597||269||318|
|Apr 22-26 2019||483||594||268||315|
|May 20-24 2019||487||595||270||314|
|Jun 17-21 2019||487||589||270||318|
|Jul 15-19, 2019||485||585||275||317|
|Aug 12-16 2019||475||543||258||295|
|Sep 9-13 2019||471||516||253||289|
|Oct 7-11, 2019||470||509||253||289|
|Nov 4-8 2019||473||499||249||289|
|Dec 2-6 2019||470||490||242||276|
|Dec 30-Jan 3 2020||470||487||238||273|
Russ Quinn can be reached at email@example.com
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