DTN Retail Fertilizer Trends

Little Movement in Fertilizer Prices

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
Connect with Russ:
DAP had an average retail price of $470 per ton the first week of June 2016. That is 18% lower than a year ago. (DTN chart)

OMAHA (DTN) -- Retail fertilizer prices continued to move very little the first week of June 2016, according to fertilizer retailers surveyed by DTN. Fertilizer prices have been steady for nine consecutive weeks now.

All eight fertilizers were lower compared to last month, but has been the case in recent weeks, none of these fertilizers were down significantly. DAP had an average price of $470 per ton, MAP $498/ton, potash $359/ton, urea $370/ton, 10-34-0 $556/ton, anhydrous $569/ton, UAN28 $267/ton and UAN32 $310/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.35/lb.N, UAN28 $0.48/lb.N and UAN32 $0.48/lb.N.

It has been a bit of an unusual spring in that retail fertilizer prices have been extremely steady for most of the application season. With the exception of a few weeks earlier this spring, prices have not moved much.

Bob Spratt, manager of LeRoy Fertilizer Services located in LeRoy, Illinois, said farmers in his region of central Illinois have pretty much wrapped up side-dressing nitrogen and are now working on post herbicide spraying on corn and soybeans. He estimated they are about half done with this chore.

Retail fertilizer prices could be heading lower this summer, Spratt said.

"Historically, the midsummer period is the low point of the fertilizer market, and all indications are this year will be no different," Spratt told DTN.

Longer term, he said he believes the retail market could be flat to slightly higher. Farmers still have the flexibility to cut out P and K applications pretty quickly if they feel like they need to, he said.

"It will be interesting to see if the recent rally in corn and beans have any effect on fertilizer," he said. "They seem to track pretty closely."

Retail fertilizers are lower compared to a year earlier. All fertilizers are now double-digits lower.

10-34-0 is 14% lower while UAN32 is 16% less expensive and MAP is 17% lower. DAP is 18% lower and UAN28 is 19% less expensive from a year previous.

In addition, both urea and anhydrous are 20% lower and potash is 27% 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 price 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 8-12 2015 571 598 491 461
July 6-10 2015 570 596 489 470
Aug 3-7 2015 567 591 482 464
Aug 31-Sept 4 2015 564 583 471 439
Sept 28-Oct 2 2015 561 573 450 424
Oct 26-30 2015 546 562 431 409
Nov 23-27 2015 543 556 422 397
Dec 21-25 2015 519 541 408 390
Jan 18-22 2016 495 520 392 381
Feb 15-19 2016 477 496 375 370
Mar 14-18 2016 477 499 369 390
Apr 11-15 2016 480 504 367 388
May 9-13 2016 476 502 366 385
June 6-10 2016 470 498 359 370
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
June 8-12 2015 649 709 331 371
July 6-10 2015 640 695 327 366
Aug 3-7 2015 628 677 318 354
Aug 31-Sept 4 2015 602 659 304 349
Sept 28-Oct 2 2015 594 644 295 342
Oct 26-30 2015 583 638 292 334
Nov 23-27 2015 580 624 286 325
Dec 21-25 2015 571 608 277 330
Jan 18-22 2016 571 581 272 319
Feb 15-19 2016 565 538 259 309
Mar 14-18 2016 560 566 276 312
Apr 11-15 2016 560 587 273 318
May 9-13 2016 561 588 274 321
June 6-10 2016 556 569 267 310

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

(AG/BAS)

Russ Quinn