OMAHA (DTN) -- Average fertilizer prices continued on their stable path the fifth week of May 2016, according to retailers surveyed by DTN. Prices have held steady for eight consecutive weeks now.
All eight fertilizers were lower compared to last month. But, as has been the case in recent weeks, none of these fertilizers saw a significant drop. DAP had an average price of $473 per ton, MAP $499/ton, potash $363/ton, urea $375/ton, 10-34-0 $559/ton, anhydrous $579/ton, UAN28 $268/ton and UAN32 $313/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.41/lb.N, anhydrous $0.35/lb.N, UAN28 $0.48/lb.N and UAN32 $0.49/lb.N.
Consolidation has been a common theme throughout the seed and ag chemical industry recently with the announcement of Dow Chemical and DuPont's plans to merge and China National Chemical Corp.'s (ChemChina) plans to buy Swiss-based Syngenta.
The fertilizer industry also seems to have caught consolidation fever, as evidenced by merger talks between CF Industries and OCI Nitrogen.
However, as has frequently happened in merger talks between seed and ag chemical companies, plans fell through when CF Industries and OCI Nitrogen called off their planned $8 billion fertilizer company merger after the deal did not meet U.S. tax rules, according to Dow Jones.
The two companies said in a joint statement they were unable to come up with a structure for the deal to combine CF with OSI's distributions operations. The companies cited a tougher regulatory and commercial environment, Dow Jones reported.
The failed fertilizer deal would have created a global nitrogen fertilizer giant. CF is already one of the world's largest manufacturers and distributors of nitrogen fertilizer while OCI, which operates in Egypt, Algeria, the Netherlands and the U.S., makes natural-gas based fertilizer and industry chemicals.
The deal would have also allowed CF to gain control of OCI's new nitrogen fertilizer plant located in Wever, Iowa. OCI Chief Executive Nassef Sawiris told Dow Jones he hoped to explore "alternative ways of collaboration or structures" with CF Industries in the future.
Despite the holding pattern in retail fertilizer prices in recent weeks, all fertilizers remain double-digits lower compared to a year ago.
10-34-0 is 14% lower while UAN32 is 16% less expensive and both DAP and MAP are 17% lower. Urea, anhydrous and UAN28 are all 18% lower from a year previous.
In addition, potash is 26% less expensive.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer prices in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|June 1-5 2015||570||598||491||461|
|June 29-July 3 2015||570||596||490||469|
|July 27-31 2015||569||594||487||469|
|Aug 24-28 2015||567||586||476||447|
|Sept 21-25 2015||562||575||454||428|
|Oct 19-23 2015||547||562||435||413|
|Nov 16-20 2015||545||559||424||403|
|Dec 14-18 2015||532||544||410||392|
|Jan 11-15 2016||495||521||391||381|
|Feb 8-12 2016||479||499||378||369|
|Mar 7-11 2016||477||494||372||378|
|Apr 4-8 2016||480||504||369||387|
|May 2-6 2016||475||502||366||385|
|May 30-June 3 2016||473||499||363||375|
|June 1-5 2015||650||710||331||371|
|June 29-July 3 2015||642||705||330||369|
|July 27-31 2015||636||689||324||354|
|Aug 24-28 2015||609||667||309||350|
|Sept 21-25 2015||589||646||297||343|
|Oct 19-23 2015||582||637||291||334|
|Nov 16-20 2015||579||629||287||332|
|Dec 14-18 2015||571||612||279||331|
|Jan 11-15 2016||572||581||272||319|
|Feb 8-12 2016||569||551||261||303|
|Mar 7-11 2016||562||541||262||312|
|Apr 4-8 2016||561||586||272||315|
|May 2-6 2016||560||589||274||321|
|May 30-June 3 2016||559||579||268||313|
Russ Quinn can be reached at firstname.lastname@example.org
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.