DTN Retail Fertilizer Trends

Prices of All Fertilizers Lower Again

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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With potash prices at six-year lows, some producers are locking in supplies for next year's crop. (DTN chart)

OMAHA (DTN) -- Fertilizer prices continued to work lower the first week of July 2016, according to retailers tracked by DTN. While prices are lower, no fertilizer value moved significantly lower, thus snapping a three-week run of notable price drops.

All eight of the major fertilizer were lower in price compared to a previous month but, again, none were down significantly. DAP had an average price of $469/ton, MAP $496/ton, potash $359/ton and urea at $361/ton. 10-34-0 was at $546/ton, anhydrous $554/ton, UAN28 $261/ton and UAN32 $304/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.34/lb.N, UAN28 $0.47/lb.N and UAN32 $0.48/lb.N.

While the 2016 growing season is nowhere near complete, some producers have already begun to focus on fertilizer needs for the 2017 crop. Some have already locked in prices for the next crop.

One Illinois farmer, who asked that his name not be used, already has locked in potash prices for the next growing season. He has pre-ordered about two-thirds of his potash needs for the upcoming crop.

"Potash is at the lows from the last six or seven years," he said. "At this level it is very profitable for us, so we locked in about a month ago."

The farmer said he locked in potash for around $225 per ton. Last year it was closer to $300 to $325 per ton in his area.

He will lock in more potash "soon," he said. He also estimated he would be willing to lock in some of his DAP needs fairly soon.

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

10-34-0 is 15% lower while both MAP and UAN32 are both 17% less expensive and DAP is 18% lower. Both anhydrous and UAN28 are 20% lower while urea is 23% lower and potash is 27% less expensive 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 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
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
July 4-8 2016 469 496 359 361
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
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
July 4-8 2016 546 554 261 304

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

Follow him on Twitter @RussQuinnDTN

(CZ/AG)

Russ Quinn