DTN Retail Fertilizer Trends

Urea Prices Jump 16% Above Last Month as Prices for All 8 Fertilizers Surge

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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The average retail price of 10-34-0 increased 8% from last month. At $502/ton, it's the most expensive it's been since August 2016. (DTN chart)

OMAHA (DTN) -- Retail fertilizer prices skyrocketed higher in the first week of February, according to prices tracked by DTN.

Once again, all eight of the major fertilizers' prices were higher, but this time, they're all up a significant amount, which DTN designates as 5% or more. In my 12 years of writing this column, this might be the first time all eight fertilizers were up a considerable amount during the same week.

Leading the way higher was urea. The nitrogen fertilizer was up a whopping 16% compared to last month and had an average price of $429/ton. That's a $61/ton gain.

Right behind urea was DAP, which was 15% more expensive, looking back to last month. The phosphorus fertilizer's average price was $554/ton, up $72/ton.

Next up was UAN28, which saw an increase of 14% from last month. The liquid nitrogen had an average price of $239/ton, up $30/ton.

MAP was 11% higher from last month. The phosphorus fertilizer's average price was $601/ton, up $58/ton. The last time MAP was above the $600/ton level was the first week of October 2014. That week, MAP had an average price of $600/ton.

Three fertilizers were 8% higher compared to the previous month. Anhydrous had an average price of $507/ton, up $37/ton; 10-34-0 $502/ton, up $38/ton; and UAN32 $272/ton, up $21/ton.

Anhydrous crossed the $500/ton level for the first time since the fourth week of October 2019. Anhydrous' average price that week was $503/ton.

Starter fertilizer, 10-34-0, rose above the $500/ton level for the first time since the fourth week of August 2016. The fertilizer's price back then was $502/ton.

Potash was also significantly higher. The fertilizer was 5% more expensive from last month and had an average price of $389/ton, up $20/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.47/lb.N, up 3 cents from last month; anhydrous $0.31/lb.N, up 1 cent; UAN28 $0.43/lb.N, up 4 cents; and UAN32 $0.42/lb.N, up 2 cents.

Rising retail fertilizer prices have pushed the stock price of fertilizer manufacturers higher as well. Incitec Pivot, an Australian fertilizer producer, has seen its stock price rally 45% from its October low, according to Dow Jones.

The company also manufacturers explosives for the mining industry, and Goldman Sachs said while it remains positive for that industry, the company's stock price is being moved right now by fertilizer prices.

"While we remain positive on the mining outlook, the primary driver of Incitec's outperformance has come from the fertilizer business, in our view, with U.S. diammonium phosphate prices up 80% versus end of June on the back of U.S. anti-dumping tariffs and a strong commodity backdrop," said Goldman Sachs.

With retail fertilizer prices moving higher over recent months, all fertilizers are now higher in price from a year ago with one exception. UAN32 is still 2% less expensive looking back to last year.

UAN28 is now 2% more expensive, anhydrous is 3% higher, potash is 4% more expensive, 10-34-0 is 8% higher, urea is 19% more expensive, DAP is 34% higher and MAP is 38% 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.

DRY
Date Range DAP MAP POTASH UREA
Feb 3-7 2020 413 435 373 361
Mar 2-6 2020 409 432 369 369
Mar 30-Apr 3 2020 408 432 370 383
Apr 27-May 1 2020 413 433 370 386
May 25-29 2020 410 434 365 377
Jun 22-26 2020 404 429 363 359
Jul 20-24, 2020 407 428 360 358
Aug 17-21 2020 427 434 353 356
Sep 14-18 2020 434 448 344 360
Oct 12-16 2020 445 475 332 359
Nov 9-13 2020 454 486 333 358
Dec 7-11 2020 456 510 348 361
Jan 4-8 2021 482 543 369 368
Feb 1-5 2020 554 601 389 429
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
Feb 3-7 2020 464 490 235 277
Mar 2-6 2020 466 490 235 277
Mar 30-Apr 3 2020 467 492 235 278
Apr 27-May 1 2020 468 492 237 279
May 25-29 2020 468 478 236 279
Jun 22-26 2020 468 463 233 273
Jul 20-24, 2020 466 460 225 263
Aug 17-21 2020 465 445 220 259
Sep 14-18 2020 455 431 219 253
Oct 12-16 2020 457 424 209 249
Nov 9-13 2020 455 422 208 248
Dec 7-11 2020 464 429 210 252
Jan 4-8 2021 464 470 209 251
Feb 1-5 2020 502 507 239 272

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

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Russ Quinn