DTN Fertilizer Trends

Fertilizer Prices Continue Downward Trend

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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Anhydrous prices declined $15/ton, or about 3%, compared to the previous month, coming in at $463/ton. That's nearly $100/ton less than the five-year average. (DTN chart)

OMAHA (DTN) -- The prices of all eight major fertilizers are lower for the third consecutive week, according to retail prices tracked by DTN for the fourth week of June 2020.

One fertilizer was significantly lower, which DTN designates as 5% or more, and that was urea. The price of the nitrogen fertilizer dropped $18/ton, or 5%, from last month with an average price of $359/ton.

The remaining seven fertilizers were all just slightly lower. DAP had an average price of $404/ton, down $6; MAP $429/ton, down $5; potash $363/ton, down $2; 10-34-0 $468/ton, down less than $1; anhydrous $463/ton, down $15; UAN28 $233/ton, down $3; and UAN32 $273/ton, down $6.

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.

Fertilizer retailers say the retail price decline coincides with seasonal patterns now that spring fertilizer application season wraps up.

Sam Barta, general agronomy manager at Rio Creek Feed Mill located in Algoma, Wisconsin, said sidedressing operations have pretty much concluded. Farmers in their area of northeast Wisconsin put some urea on their corn acres as well as UAN32.

After an extremely wet 2019 growing season, the area, which sits on the shore of Lake Michigan, has seen a good start to the 2020 growing season, Barta said.

"We had ideal planting weather this spring, but we have seen some rains since," Barta said. "We did have lower parts of fields drown out and some replanting took place."

The price outlook for fertilizers is hard to predict in general and is an especially difficult task during the COVID-19 pandemic, he said. Fertilizer prices did start to climb back in February and March when the pandemic began but they have dropped in recent weeks.

Barta said they saw no issues with fertilizer supplies this spring. He credited this to the fertilizer industry being deemed an essential industry at the beginning of the pandemic.

"I think right now most people are holding out (buying) to see if prices continue to go down or if this is it," he said.

Retail fertilizers are all lower in price from a year ago. Anhydrous is 21% lower, MAP is 19% less expensive, DAP is 18% lower, urea is 16% less expensive, both UAN28 and UAN32 are 14% lower, potash is 8% less expensive 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 prices 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 the cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

DRY
Date RangeDAPMAPPOTASHUREA
Jun 24-28, 2019495531392429
Jul 22-26 2019495531394430
Aug 19-23 2019491495387413
Sep 16-20 2019480478384404
Oct 14-18, 2019465472382402
Nov 11-15 2019457465382388
Dec 9-13 2019445463378380
Jan 6-10 2020435444375358
Feb 3-7 2020413435373361
Mar 2-6 2020409432369369
Mar 30-Apr 3 2020408432370383
Apr 27-May 1 2020413433370386
May 25-29 2020410434365377
Jun 22-26 2020404429363359
LIQUID
Date Range10-34-0ANHYDUAN28UAN32
Jun 24-28, 2019487584269318
Jul 22-26 2019485582272320
Aug 19-23 2019475530257291
Sep 16-20 2019471509254289
Oct 14-18, 2019471507253289
Nov 11-15 2019473496246284
Dec 9-13 2019470489241276
Jan 6-10 2020471486237272
Feb 3-7 2020464490235277
Mar 2-6 2020466490235277
Mar 30-Apr 3 2020467492235278
Apr 27-May 1 2020468492237279
May 25-29 2020468478236279
Jun 22-26 2020468463233273

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

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Russ Quinn