LINCOLN, Neb. (DTN) -- Retail fertilizer prices tracked by DTN continue their march upward, as seven of eight major fertilizers showed month-over-month increases based on a survey of sellers in the second week of May.
For the second straight week prices for UAN28 and UAN32 were significantly higher than the previous month. DTN designates significantly higher as 5% or higher.
UAN32 jumped to $406 per ton and UAN28 came in at $361. Anhydrous saw a 2% increase to $713/ton as did 10-34-0 at $620/ton. Prices for DAP, potash and urea were all up by 1% from the previous month.
The price of DAP increased to $631/ton, potash at $437 and urea at $515/ton. The price for MAP remained steady at $702/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.56/pound, anhydrous $0.44/pound, UAN28 $0.64/pound and UAN32 $0.63/pound.
The general rise in fertilizer prices has been quite dramatic in the past year. According to DTN's database, prices for MAP, DAP and UAN28 are higher by 62%, 53% and 53%, respectively, compared to one year ago.
Anhydrous and UAN32 prices each are 45% higher than one year ago, while urea is 33% higher, 10-34-0, 32% higher and potash at 18% higher.
According to an April 20, 2021, analysis of fertilizer prices by farmdoc at the University of Illinois at Urban-Champaign, the spike in fertilizer prices has corresponded to increases in both corn and soybean prices.
Those higher fertilizer costs, farmdoc said, will take some of the wind out of the sails of expected profits from higher corn and soybean prices. https://farmdocdaily.illinois.edu/….
"Increased fertilizer costs will offset some of the additional profitability that may result from corn and soybean production if higher prices persist into the fall of this year and winter of next year," farmdoc said.
"Input prices have a history of increasing with corn prices. As a result, the current price increases are not unexpected. Given historical relationships, one would not expect nitrogen and other fertilizer prices to decline until corn and soybeans prices decline, likely in a lagged relationship."
Farmdoc said farmers who purchased and applied "most of their fertilizers in fall 2020 will likely have lower costs than those applying and purchasing most of their inputs in spring 2021.
"For example, many farmers apply phosphate and potash fertilizers in the fall. Those farmers will have lower costs than those farmers who purchase and apply those fertilizers in the spring for the 2021 crop. Some farmers apply all or a majority of their nitrogen fertilizer in the late fall. Fall-applied fertilizer likely will have lower costs than nitrogen applied in the spring and summer for the 2021 crop."
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.
|May 11-15 2020||413||433||370||388|
|Jun 8-12 2020||406||430||363||367|
|Jul 6-10 2020||405||427||360||360|
|Aug 3-7 2020||416||430||357||354|
|Aug 31-Sep 4 2020||431||442||348||361|
|Sep 28-Oct 2 2020||439||459||338||362|
|Oct 26-30 2020||448||477||332||358|
|Nov 23-27 2020||456||495||337||359|
|Dec 21-25 2020||474||535||365||363|
|Jan 18-22 2021||493||563||379||387|
|Feb 15-19 2021||600||648||404||457|
|Mar 15-19 2021||616||693||424||496|
|Apr 12-16 2021||624||702||432||509|
|May 10-14 2021||631||702||437||515|
|May 11-15 2020||468||492||237||280|
|Jun 8-12 2020||468||472||235||276|
|Jul 6-10 2020||467||461||233||272|
|Aug 3-7 2020||465||455||222||262|
|Aug 31-Sep 4 2020||459||436||216||254|
|Sep 28-Oct 2 2020||457||424||212||250|
|Oct 26-30 2020||456||423||209||249|
|Nov 23-27 2020||457||424||210||249|
|Dec 21-25 2020||463||461||210||250|
|Jan 18-22 2021||481||482||215||251|
|Feb 15-19 2021||522||530||245||288|
|Mar 15-19 2021||596||671||331||373|
|Apr 12-16 2021||609||700||345||387|
|May 10-14 2021||620||713||361||406|
Todd Neeley can be reached at firstname.lastname@example.org
Follow him on Twitter @toddneeleyDTN
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