DTN Retail Fertilizer Trends
Fertilizer Prices Fade as Demand Declines After Planting
OMAHA (DTN) -- The majority of fertilizers continue to be less expensive for the third week of June 2022, according to fertilizer prices tracked by DTN. This trend has been in place for a month now.
Seven of the eight major fertilizers prices were lower compared to last month, including one down considerably. DTN designates a significant move as anything 5% or more.
Urea was 9% lower compared to last month. The nitrogen fertilizer had an average price of $902/ton, an $87/ton decline.
DAP had an average price of $1,040/ton, MAP $1,058/ton, 10-34-0 $905/ton, anhydrous $1,497/ton, UAN28 $616/ton and UAN28 $716/ton.
One fertilizer was slightly more expensive compared to last month but nothing substantial. Potash had an average price of $885/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.98/lb.N, anhydrous $0.91/lb.N, UAN28 $1.10/lb.N and UAN32 $1.12/lb.N.
With lower fertilizer prices in the third week of June, it's almost a return to the past. This was a normal trend we would see after the spring planting and fertilizer application seasons.
With less fertilizer demand, nutrient prices would normally drop some in June/July and then firm somewhat once retailers refilled their inventories over the summer. Fertilizer prices would firm again in the fall as demand would increase as application would happen.
This trend has seen some adjustment over the years with the emergence of side dressing operations becoming more popular. Fertilizer prices would drop in early June, but then this seasonal drop started happening later, into late June and into July as there continued to be fertilizer demand in early June.
Of course, we didn't see this downtrend at all in 2021. Retail fertilizer prices were continuously moving higher during last year.
It will be interesting to see what happens in the coming weeks and months. I'm not sure the return of this trend means fertilizer prices are destined to be lower, but it is kind of nice to be able to see something "normal" with fertilizer market trends, especially after last year.
Most fertilizers continue to be considerably higher in price than one year earlier.
10-34-0 is 45% more expensive, MAP is 47% higher, DAP is 55% more expensive, urea is 67% higher, UAN28 is 68% more expensive, UAN32 is 70% higher, potash is 89% more expensive and anhydrous is 107% higher compared to last year.
DTN gathers fertilizer price bids from agriculture retailers each week to compile the DTN Fertilizer Index. DTN first began reporting data in November 2008.
In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….
Those farmers who graze livestock also saw a large increase in their fertilizer budgets for nutrients for grasslands this growing season. You can read it here: https://www.dtnpf.com/….
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Russ Quinn can be reached at Russ.Quinn@dtn.com
Follow him on Twitter @RussQuinnDTN
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