DTN Fertilizer Trends

Urea, Anhydrous Lead Retail Fertilizer Prices Lower

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
Connect with Russ:
After a $27/ton decline from last month, retail urea prices came in at $360/ton. Urea prices are 17% lower than they were at the same time last year. (DTN Chart)

OMAHA (DTN) -- Retail fertilizer prices continue to be lower, according to prices tracked by DTN for the third week of June 2020. This marks the second week in a row that all eight major fertilizers are lower compared to last month.

Nitrogen fertilizers are leading the way lower. Urea is down $27/ton, or 7%, from last month with an average price of $360/ton. Anhydrous is 5% lower with an average price of $464/ton, a drop of $26/ton. DTN considers a price move to be significant if it's over 5%.

The remaining six fertilizer are slightly lower. DAP has an average price of $405/ton, down $4; MAP $429/ton, down $5; potash $363/ton, down $4; 10-34-0 $468/ton, down $1; UAN28 $233/ton, down $4; and UAN32 $273/ton, down $7.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.28/lb.N, UAN28 $0.42/lb.N and UAN32 $0.43/lb.N.

In a report titled "Essential Fertilizers Ride the Coronavirus Storm," Julia Meehan, Independent Commodity Intelligence Services (ICIS) Managing Editor, Fertilizers, wrote about the effects COVID-19 has had on the global fertilizer market. For the most part, the industry has seem limited effects from the pandemic.

With the COVID-19 pandemic starting in China, that country saw the first impact in terms of cuts to fertilizer production as well as transportation. The biggest impact was on phosphoric acid, which is used to produce phosphate.

"As China has eased its way out of the lockdown, the flow of all fertilizer has recovered very quickly and life is getting back to normal again," Meehan wrote.

As the virus spread around the world, many countries started to feel the full impact during a time when much fertilizer was being applied, particularly in the Northern Hemisphere, she wrote. While there was some pressure on pricing in April and May, the fertilizer sector did not see sharp declines like those in the gas, oil and petrochemicals sector.

"Fertilizer makers have benefited from cheap feed and energy costs, meaning that even marginal producers have continued to operate, and the markets have not felt any shortness of availability," she wrote.

Meehan wrote the outlook for the global fertilizer market remains uncertain amid concerns of a second wave of the virus and what it could mean to the industry. Currency fluctuations, political unrest and high levels of unemployment in both developed and developing nations will have an impact in the months and years ahead.

The good news is the world will need to be fed, and the fertilizer industry will continue to be deemed essential, she wrote.

Retail fertilizers are all lower in price from a year ago. Anhydrous is 21% lower, MAP is 19% less expensive, DAP is 18% down, urea is 17% lower, both UAN28 and UAN32 are 14% less expensive, potash is 7% lower and 10-34-0 is 4% lower from last year at this time.

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.

DRY
Date Range DAP MAP POTASH UREA
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
Jan 27-31 2020 414 435 373 359
Feb 24-28 2020 409 434 371 366
Mar 23-27 2020 409 434 370 382
Apr 20-24 2020 410 433 370 385
May 18-22 2020 409 434 367 387
Jun 15-19 2020 405 429 363 360
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
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
Jan 27-31 2020 467 488 237 275
Feb 24-28 2020 466 490 235 277
Mar 23-27 2020 466 491 235 278
Apr 20-24 2020 468 492 236 279
May 18-22 2020 469 490 237 280
Jun 15-19 2020 468 464 233 273

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

Follow him on Twitter @RussQuinnDTN

Russ Quinn