DTN Retail Fertilizer Trends

Most Fertilizer Prices Continue to Decline

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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The price of 10-34-0 increased to $471/ton, up $1 from the same time last month. It's 5% higher than at the same time last year. (DTN Chart)

OMAHA (DTN) -- The streak is over.

The retail price of one of the eight major fertilizers tracked by DTN increased in the fourth week of September 2019, ending a six week run in which all of the fertilizers' prices declined.

The price of 10-34-0 increased to $471/ton, up $1 from the same time last month.

Prices for the remaining seven fertilizers were lower but not by a significant amount, which DTN considers at 5% or more. DAP had an average price of $479/ton, down $12; MAP $475/ton, down $19; potash $384/ton, down $3; urea $404/ton, down $8; anhydrous $511/ton, down $17; UAN28 $254/ton, down $2; and UAN32 $289/ton, down $1.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.31/lb.N, UAN28 $0.45/lb.N and UAN32 $0.45/lb.N.

The fertilizer industry is a global market, and what happens on the world stage trickles down to all local markets. With this in mind, a German fertilizer company announced last week it was cutting fertilizer production in response to weak demand.

Germany fertilizer manufacturer K+S AG said it is reducing production of potassium chloride by up to 300,000 metric tons by the end of the calendar year, according to Dow Jones. The hit to earnings for the company is expected to be up to 80 million euros ($88.2 million).

The cutback comes as German economic indicators signal a possible downturn is imminent. The weakness in the German economy is spreading to services sector, which has been fairly strong over recent quarters even as manufacturing output has declined, according to a survey of purchasing managers.

With prices significantly lower in recent weeks, two fertilizers' prices dropped to being lower in price from a year ago. DAP is now 3% less expensive, and MAP is 9% lower from last year at this time.

The remaining six major fertilizers continue to be higher compared to last year. UAN32 and anhydrous are both 4% more expensive, both urea and UAN32 are now 5% higher, potash is 6% more expensive and UAN28 are 7% 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 price 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.

DRY
Date Range DAP MAP POTASH UREA
Sep 24-28 2018 494 520 361 385
Oct 22-26 2018 499 518 366 406
Nov 19-23 2018 501 530 368 407
Dec 17-21 2018 508 532 377 407
Jan 14-18 2019 512 534 383 407
Feb 11-15 2019 512 537 385 405
Mar 11-15 2019 510 534 386 402
Apr 8-12 2019 505 532 387 404
May 6-10 2019 501 527 391 418
Jun 3-7 2019 497 527 392 434
Jul 1-5, 2019 498 532 392 432
Jul 29-Aug 2 2019 494 530 393 428
Aug 26-30 2019 491 494 387 412
Sep 23-27, 2019 479 475 384 404
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
Sep 24-28 2018 449 493 236 278
Oct 22-26 2018 457 499 243 284
Nov 19-23 2018 457 520 246 287
Dec 17-21 2018 457 565 265 304
Jan 14-18 2019 462 580 270 305
Feb 11-15 2019 470 596 271 318
Mar 11-15 2019 469 596 269 318
Apr 8-12 2019 481 592 271 317
May 6-10 2019 487 595 267 310
Jun 3-7 2019 487 591 271 314
Jul 1-5, 2019 482 584 276 317
Jul 29-Aug 2 2019 486 580 272 320
Aug 26-30 2019 470 528 256 290
Sep 23-27, 2019 471 511 254 289

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

Follow him on Twitter @RussQuinnDTN

(KD/SK)

Russ Quinn