DTN Retail Fertilizer Trends

Anhydrous Leads Fertilizer Prices Lower

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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The average retail price of anhydrous is 7% lower than last month and costs an average of $1,336/ton. It's 80% more expensive than last year. (DTN chart)

OMAHA (DTN) -- Retail fertilizer prices continue to move lower, according to prices tracked by DTN for the third week of August 2022.

For three weeks in a row, all eight of the major fertilizers are less expensive compared to a month ago. After a week in which half the fertilizer prices were notably lower, only one fertilizer was considerably lower this week. DTN designates a significant move as anything 5% or more.

Anhydrous was 7% less expensive compared to last month. The nitrogen fertilizer's average price was $1,336/ton.

The remaining seven fertilizers were just slightly lower. DAP had an average price of $978/ton, MAP $1,026/ton, potash $881/ton, urea $807/ton, 10-34-0 $878/ton, UAN28 $576/ton and UAN32 $676/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.88/lb.N, anhydrous $0.81/lb.N, UAN28 $1.03/lb.N and UAN32 $1.06/lb.N.

Canada is urging farmers to reduce fertilizer emissions to curb greenhouse gasses, according to Dow Jones. This has triggered a backlash from farmers and concerns amid world food shortages.

The government is proposing a 30% reduction by 2030 from 2020 levels in emissions from fertilizer as part of a plan to reduce greenhouse gasses. Canada's Minister of Agriculture and Agri-Food Marie-Claude Bibeau said fertilizer use is one activity they have identified that can have an impact on reducing emissions.

"We are really committed to the fight against climate change," Bibeau said.

Farmers, however, are not convinced this is the right course of action. Gunter Jochum, a farmer and president of the Western Canadian Wheat Growers Association, is leery of the Canadian government's proposal.

"If there's a reduction in food production, it will definitely impact our regular customers in the world that rely on Canadian food," Jochum said.

Canada wants to avoid a situation like in the Netherlands where farmers are protesting the Dutch government's similar plan. So, the proposed target is a recommendation, according to a spokesperson for Agriculture and Argi-Food Canada.

Farmers who don't comply with the Canadian government's recommendations won't face any consequences. They would, however, forgo some of the $1.5 billion in financial aid and grants the government has made available to farmers to subsidize their operations.

Despite lower prices in recent months, all fertilizers continue to be considerably higher in price than one year earlier.

MAP is 36% more expensive, 10-34-0 is 39% higher, DAP is 41% more expensive, urea is 45% higher, potash and UAN28 are both 56% more expensive, UAN32 is 61% higher and anhydrous is 80% more expensive 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.

USDA reported last week the recently passed Inflation Reduction Act will deliver $19.5 billion in new conservation funding, including improved opportunities for nutrient management. You can read it here: https://www.dtnpf.com/….

Dry
Date Range DAP MAP POTASH UREA
Aug 16-20 2021 695 755 564 556
Sep 13-17 2021 702 776 598 572
Oct 11-15 2021 798 860 710 719
Nov 8-12 2021 821 906 762 832
Dec 6-10 2021 840 919 778 887
Jan 3-7 2022 863 931 807 913
Jan 31-Feb 4 2022 877 933 813 905
Feb 28-Mar 4 2022 879 937 815 887
Mar 28-Apr 1 2022 1033 1045 868 1022
Apr 25-29 2022 1049 1082 881 1004
May 23-27 2022 1056 1082 879 989
Jun 20-Jun 24 2022 1040 1058 885 902
Jul 18-22 2022 1007 1043 887 836
Aug 15-19 2022 978 1026 881 807
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
Aug 16-20 2021 631 743 369 420
Sep 13-17 2021 632 762 381 428
Oct 11-15 2021 654 873 442 488
Nov 8-12 2021 719 1162 566 614
Dec 6-10 2021 756 1372 577 661
Jan 3-7 2022 795 1430 584 679
Jan 31-Feb 4 2022 826 1487 600 699
Feb 28-Mar 4 2022 837 1487 603 703
Mar 28-Apr 1 2022 896 1526 637 711
Apr 25-29 2022 906 1534 631 730
May 23-27 2022 906 1531 634 731
Jun 20-Jun 24 2022 905 1497 616 716
Jul 18-22 2022 894 1431 598 696
Aug 15-19 2022 878 1336 576 676

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

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Russ Quinn