DTN Retail Fertilizer Trends

Stable Prices Continue

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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Retail fertilizer prices continued on their stable path during the last week. Urea averaged $375 per ton, or $0.41 on a price per pound of nitrogen basis, according to retailers contacted by DTN. (DTN chart)

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):

DRY
Date Range DAP MAP POTASH UREA
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
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
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 russ.quinn@dtn.com

(CZ)

Russ Quinn