OMAHA (DTN) -- All average retail fertilizer prices moved lower again the fourth week of August 2022, according to sellers surveyed by DTN. This marks a full month all eight of the major fertilizers are less expensive compared to a month ago.
Only one fertilizer was significantly lower, which DTN designates as anything 5% or more.
Anhydrous was 7% less expensive than last month. The nitrogen fertilizer's average price was $1,331 per ton.
The remaining seven fertilizers were just slightly lower. DAP had an average price of $972 per ton, MAP $1,026/ton, potash $880/ton, urea $804/ton, 10-34-0 $869/ton, UAN28 $575/ton and UAN32 $676/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.87/lb.N, anhydrous $0.81/lb.N, UAN28 $1.03/lb.N and UAN32 $1.06/lb.N.
The European natural gas supply situation is influencing fertilizer production in the continent. Russia's invasion of Ukraine earlier this year has pushed natural gas prices to record highs.
As a result, Yara International announced last week it is curtailing fertilizer production in Europe.
The fertilizer manufacturer will limit production an annual capacity equivalent of 3.1 million metric tons (mmt) on ammonia and 4 mmt on finished products (1.8 mmt urea, 1.9 mmt nitrates and 0.3 mmt NPK). This lowers Yara's total European ammonia capacity utilization to around 35%.
"Yara will, where possible, use its global sourcing and production system to optimize operations and meet customer demand, including continued nitrate production using imported ammonia when feasible," Yara said in a news release on Aug. 25. "Yara will continue to monitor the situation and adapt to market conditions going forward."
Due to skyrocketing natural gas prices, Europe this summer has lost about half of its ammonia production and 33% of its nitrogen fertilizer production, according to London-based research firm CRU Group.
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 38% higher, DAP is 40% more expensive, urea is 44% higher, potash and UAN28 are both 55% more expensive, UAN32 is 61% higher and anhydrous is 78% 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.
In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….
Canada is urging farmers to reduce fertilizer emissions to curb greenhouse gasses, according to Dow Jones. You can read more about that 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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