DTN Retail Fertilizer Trends

Fertilizer Price Increases Slow After Months of Sharp Gains

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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The average retail price of UAN28 was $348 per ton, an increase of 4% from the previous month. The nitrogen fertilizer is 47% more expensive than it was last year. (DTN chart)

OMAHA (DTN) -- Retail fertilizer prices continued to increase the third week of April 2021, albeit at a slower pace, according to sellers surveyed by DTN.

While all eight of the major fertilizers were higher compared to a month earlier, no fertilizers were significantly higher, which DTN designates as 5% or more. Increases fell between 1% and 4%.

UAN28 and UAN32 increased the most, about 4% each. UAN28 cost an average of $348 per ton, while UAN32 was $391/ton.

Anhydrous increased 3% to $707/ton.

With 2% increases, urea had an average price of $510/ton, while 10-34-0 was $612/ton.

DAP had an average price of $627/ton, MAP $703/ton and potash $432/ton, an increase of 1% over last month.

On a price per pound of nitrogen basis, the average urea price was at $0.55/lb.N, anhydrous $0.43/lb.N, UAN28 $0.62/lb.N and UAN32 $0.61/lb.N.

In a recent edition of the University of Illinois Extension farmdoc Daily e-newsletter, ag economists from the University of Illinois and Ohio State University authored an article titled "Fertilizer Price Increases for 2021 Production."

The article points out retail fertilizer prices have increased dramatically since the fall of 2020. This, in turn, has led to increased fertilizer costs in both corn and soybean production budgets.

Using retail fertilizer prices from the USDA Illinois Production Cost report, the authors reported anhydrous ammonia prices have increased by $259/ton, or 60%, from Sept. 10, 2020, to April 8, 2021. DAP had an increase during the same period of $224/ton, or 54%, and potash was up $103/ton, or 31%.

Because of these higher retail fertilizer prices, corn and soybean production costs have increased.

Fertilizer costs for corn production on Sept. 10, 2020, were $93/acre. An estimate on April 8 showed the cost was now at $140/acre, a $47/acre increase.

Higher fertilizer costs were also present in soybean production. The estimated fertilizer cost in September 2020 was at $39/acre, and the cost in April 2021 had risen to $56/ton, an increase of $17/acre.

"Overall, this will increase the profitability of soybeans relative to corn," the authors wrote. "Soybeans have been projected more profitable than corn, so the additional fertilizer costs may not influence acreage decisions."

To read the entire article, click on the following link: https://farmdocdaily.illinois.edu/….

With retail fertilizer prices moving higher over recent months, all fertilizers are now higher in price from a year ago.

Potash is now 17% more expensive, 10-34-0 is 31% higher, urea is 32% more expensive, UAN32 40% higher, anhydrous is 44% more expensive, UAN28 is 47% higher, DAP is 53% more expensive and MAP 62% is 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.

DRY
Date Range DAP MAP POTASH UREA
Apr 20-24 2020 410 433 370 385
May 18-22 2020 409 434 367 387
Jun 15-19 2020 405 429 363 360
Jul 13-17 2020 406 428 361 359
Aug 10-14 2020 426 434 353 355
Sep 7-Sep 11, 2020 434 445 345 360
Oct 5-9 2020 441 466 335 361
Nov 2-6 2020 447 479 331 358
Nov 30-Dec 4 2020 455 499 340 359
Dec 28-Jan 1 2021 475 537 366 367
Jan 25-29 2021 500 580 379 405
Feb 22-26 2021 605 661 408 464
Mar 22-26 2021 616 696 428 499
Apr 19-23 2021 627 703 432 510
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
Apr 20-24 2020 468 492 236 279
May 18-22 2020 469 490 237 280
Jun 15-19 2020 468 464 233 273
Jul 13-17 2020 468 460 225 263
Aug 10-14 2020 465 447 221 259
Sep 7-Sep 11, 2020 459 434 216 253
Oct 5-9 2020 457 424 209 250
Nov 2-6 2020 455 423 208 248
Nov 30-Dec 4 2020 459 427 208 249
Dec 28-Jan 1 2021 464 470 209 250
Jan 25-29 2021 489 489 220 258
Feb 22-26 2021 532 544 250 296
Mar 22-26 2021 599 684 335 376
Apr 19-23 2021 612 707 348 391

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

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Russ Quinn