DTN Retail Fertilizer Trends
Potash Prices Show Strength Amid Supply Issues
OMAHA (DTN) -- Retail fertilizer prices continued to rise the third full week of June 2021.
After five weeks with no significant price changes, which DTN designates as 5% or more, one fertilizer was noticeably higher. Potash was up 6% compared to last month and had an average price of $469/ton.
Prices for the remaining seven fertilizers were just slightly higher. DAP, urea and UAN32 prices increased 3%. DAP had an average price of $670 per ton, urea $541/ton and UAN32 $420/ton.
The remaining fertilizers only saw their price change by about 1%. MAP cost $720/ton, 10-34-0 $625/ton, anhydrous $724/ton and UAN28 $366/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.59/lb.N, anhydrous $0.44/lb.N, UAN28 $0.65/lb.N and UAN32 $0.65/lb.N.
In the June 2021 North American Agribusiness Review by RaboResearch, analysts said fertilizers face supply issues compounded by underlying demand strength.
The North American Fertilizer Index has risen roughly 15% since April. In a year, the index has risen 120% to reach the highest fertilizer cost for farmers in almost a decade, the report said.
Supply and demand issues are apparent in the potash market. The announcement of the closure of a potash mine in Canada combined with some risk associated with Belarusian supply further compounded a tightening market, according to the report.
"While we had highlighted the risks of high potash prices this coming fall as far back as December, these new issues serve to compound those concerns as we look to post harvest applications," the report said. "Estimates suggest we could see a further 20% increase in inland markets between now and the end of harvest."
Nitrogen and phosphate fertilizers also see some price risk to the upside, according to the report. Recent data from China suggests tighter global inventory of urea, although new global capacity is expected to come online later than sooner.
A full copy of the report, which also includes forecasts for crops, livestock and the general economy, can be found here: https://research.rabobank.com/….
Potash is now 29% more expensive, 10-34-0 is 34% higher, urea is 51% more expensive, UAN32 54% higher, anhydrous is 56% more expensive, UAN28 is 57% higher, DAP is 66% more expensive and MAP 68% 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 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 cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
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