OMAHA (DTN) -- For the third week in a row, retail fertilizer prices showed considerable price declines the fourth week of August 2016, according to fertilizer retailers surveyed by DTN. Like last week, all eight major fertilizers were lower compared to a month earlier, and all but one fertilizer has seen significant price drops.
UAN28 is now 10% lower compared to the previous month. Liquid nitrogen fertilizer had an average price of $234 per ton. Urea, 10-34-0 and UAN32 were all down 8%, with urea having an average price of $330/ton, 10-34-0 $502/ton and UAN32 $280/ton.
Potash is 7% less expensive compared to last month, while anhydrous was down 6% and MAP was 5% less expensive. Potash had an average price of $330/ton, anhydrous was at $515/ton and MAP was at $468/ton.
The remaining fertilizer without a significant move lower was DAP. The phosphorus fertilizer had an average price of $451/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.36/lb.N, anhydrous $0.31/lb.N, UAN28 $0.42/lb.N and UAN32 $0.44/lb.N.
Merger mania in agriculture isn't limited to just seed and ag chemical companies. Bloomberg News reported Tuesday morning that Agrium Inc. and Potash Corp., two large Canadian fertilizer producers, are in talks about a possible merger that could form a company with a total market value of more than $28 billon.
Bloomberg first reported that the fertilizer companies were in advanced merger talks with a deal announcement possible as soon as next week.
Both companies have had to cut 2016 earnings guidance this year with Potash Corp. cutting its quarterly dividend for a second time this year, a Dow Jones article stated. Fertilizer producers have been hurt in recent years by depressed prices for crop nutrients amid an ample supply of fertilizer and weak demand.
However, no deal has been made yet and there is no assurance the discussions will result in any potential deal. In a press release Tuesday morning, Potash Corp said as much.
"No deal has been made as to proceed with such a combination, no agreement has been reached, and there can be no assurance that any transaction will result from these discussions," the Potash Corp. press release stated.
Retail fertilizers are lower compared to a year earlier. All fertilizers are now double digits lower.
10-34-0 is now down 18%, both MAP and UAN32 are 20% less expensive and DAP is 21% lower. Anhydrous is now 23% lower, UAN28 is 24% less expensive, urea is down 26% and potash is 31% lower compared to a year prior.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|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 27-July 1 2016||468||495||358||365|
|July 25-29 2016||459||492||356||356|
|Aug 22-26 2016||451||468||330||330|
|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|
|June 27-July 1 2016||554||566||266||304|
|July 25-29 2016||543||545||257||304|
|Aug 22-26 2016||502||515||234||280|
Russ Quinn can be reached at firstname.lastname@example.org
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