DTN Fertilizer Trends

Fertilizer Prices Wilt in Summer Heat

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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Urea prices dropped $16/ton, or 4%, from the same time last month, with retailers reporting an average price of $357/ton. Urea is 17% less expensive than last year. (DTN Chart)

OMAHA (DTN) -- Retail fertilizer prices continue to be lower, according to prices tracked by DTN for the last week of June 2020. This is the fourth straight week all eight major fertilizers are lower compared to the prior month.

While retail prices were lower, none declined by a significant amount, which DTN designates as 5% or more. DAP has an average price of $406/ton, down $1; MAP $427/ton, down $4; potash $361/ton, down $3; urea $357/ton, down $16; 10-34-0 $468/ton, down less than $1; anhydrous $461/ton, down $14; UAN28 $233/ton, down $3; and UAN32 $272/ton, down $4.

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.

Although sidedressing operations are finished for the year, Bob Spratt, manager of LeRoy Fertilizer Services located in LeRoy, Illinois, said he was busy last week getting things wrapped up before the long holiday weekend.

Spratt's home area of central Illinois has been dry so far this growing season.

"It seems like there's a wall at Interstate 55 and Interstate 72," Spratt told DTN.

The good news for those in the market for fertilizer in the coming months is the price outlook appears to be lower for the 2021 crop. Spratt believes nitrogen, phosphorus and potash will all stay fairly flat.

One thing to watch locally could be how the closing of the Illinois River affects the supply of fertilizer in the region, he said. The aging lock and dam system is closing for repairs.

DTN Cash Grain Analyst Mary Kennedy reported on this subject in her Market Matters Blog on June 15 (https://www.dtnpf.com/…). The closures are scheduled to begin on July 1 and last through Oct. 24.

Kennedy wrote no vessel traffic will be allowed through the affected locks, which means barges that normally carry agricultural commodities through those locks will be at a standstill. The repairs were scheduled during the months of July through October to avoid spring flooding and to eliminate an impact during harvest season when barge traffic is heaviest, she wrote.

Retail fertilizers are all lower in price from a year ago. Anhydrous is 21% lower, MAP is 20% less expensive, DAP is 19% lower, urea is 17% less expensive, UAN28 is 15% lower, UAN32 is 14% less expensive, potash is 8% lower and 10-34-0 is 3% less expensive 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
Jul 1-5, 2019 498 532 392 432
Jul 29-Aug 2 2019 494 530 393 428
Aug 26-30 2019 491 494 387 412
Sep 23-27, 2019 479 475 384 404
Oct 21-25, 2019 465 473 383 404
Nov 18-22 2019 456 466 381 387
Dec 16-20 2019 444 460 378 377
Jan 13-17 2020 433 444 375 357
Feb 10-14 2020 413 435 373 361
Mar 9-13 2020 407 432 370 377
Apr 6-10 2020 409 434 370 382
May 4-8 2020 413 433 370 388
Jun 1-5 2020 407 431 364 373
Jun 29-Jul 3 2020 406 427 361 357
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
Jul 1-5, 2019 482 584 276 317
Jul 29-Aug 2 2019 486 580 272 320
Aug 26-30 2019 470 528 256 290
Sep 23-27, 2019 471 511 254 289
Oct 21-25, 2019 471 507 251 291
Nov 18-22 2019 472 496 245 284
Dec 16-20 2019 469 487 239 276
Jan 13-17 2020 470 487 237 275
Feb 10-14 2020 464 490 235 277
Mar 9-13 2020 466 490 235 278
Apr 6-10 2020 468 492 235 278
May 4-8 2020 468 492 237 280
Jun 1-5 2020 468 475 236 276
Jun 29-Jul 3 2020 468 461 233 272

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

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Russ Quinn