DTN Retail Fertilizer Trends
Urea Prices Drop 11% as Fertilizer Prices Slip Lower
OMAHA (DTN) -- Average retail fertilizer prices continued to be mostly lower the fourth week of June 2022, according to sellers surveyed by DTN. This trend has been in place for five weeks now.
Prices for all but one of the eight major fertilizers were lower compared to last month, with only one fertilizer down considerably. DTN designates a significant move as anything 5% or more.
Urea was 11% lower compared to last month. The nitrogen fertilizer had an average price of $867 per ton. The nitrogen fertilizer dropped below $900/ton for the first time since the last week of February 2022 when the price was $887/ton.
DAP had an average price of $1,039/ton, MAP $1,053/ton, 10-34-0 $904/ton, anhydrous $1,466/ton, UAN28 $611/ton and UAN28 $702/ton.
One fertilizer was slightly more expensive compared to last month but nothing sizeable. Potash had an average price of $885/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.94/lb.N, anhydrous $0.89/lb.N, UAN28 $1.09/lb.N and UAN32 $1.10/lb.N.
A recently released ag economy index showed farmers continue to be concerned about rising input prices. The Purdue University/CME Group Ag Economy Barometer was down 2 points to 97 (https://ag.purdue.edu/…).
The index of Future Expectations fell 5 points to 96, marking the lowest level for the index since October of 2016.
"Rising input costs and uncertainty about the future continue to weigh on farmer sentiment," said James Mintert, the barometer's principal investigator and director of Purdue's Center for Commercial Agriculture. "Many producers remain concerned about the ongoing escalation in production costs as well as commodity price volatility, which could lead to a cost/income squeeze in 2023."
The top concern for producers in the upcoming year continues to be input prices (43%), followed by input availability (21%), government policies (18%) and lower output prices (17%).
Most fertilizer prices are considerably higher than one year ago.
10-34-0 is 45% more expensive, MAP is 46% higher, DAP is 54% more expensive, urea 60% higher, both UAN28 and UAN32 is 67% more expensive, potash is 86% higher and anhydrous is 101% 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.
With lower fertilizer prices in the third week of June, it is almost a return to "normal" times with lower fertilizer prices after the spring planting/fertilizer application seasons. 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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