DTN Fertilizer Outlook

OMAHA (DTN) -- Retail fertilizer prices continued to rise the fourth week of February 2017, albeit at a slower rate than in recent weeks, according to fertilizer retailers surveyed by DTN. This is the fifth-consecutive week prices have moved higher.

All eight major fertilizers were higher compared to a month earlier, marking the first time in several months that all price moves were to the higher side. While all fertilizers were higher, none of the eight were up any significant amount.

DAP had an average price of $433 per ton, MAP $452/ton, potash $332/ton and urea $359/ton. 10-34-0 had an average price of $440/ton, anhydrous $490/ton, UAN28 $241/ton and UAN32 $276/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.30/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

As retail fertilizer prices rise, it puts more pressure on farmers' crop budgets, making it more difficult to stay in the black with lower commodity prices. Some farmers have decided to cut back on inputs, while others have invested in newer technologies to make their operations more efficient.

One farmer who has invested in newer technology is Maria Cox, who farms with her father, Ethan, near White Hall, Illinois. This is the first year they have used variable rate technology (VRT) on the dry fertilizer applied to their fields. Dry fertilizer is usually applied in the fall, but they waited until this spring to apply so new soil tests could be done and yield removal information from the combine could be analyzed.

"We might be a little behind on the VRT fertilizer trend, but I can see that we will be doing this from now on," Cox told DTN. "We didn't price shop for fertilizer this spring, but we are going to save big on inputs."

Cox said, instead of a blanket dry fertilizer application, the fertilizer will only go on spots in their fields that really need nutrients. Soil tests have also changed as she moved to smaller grid samples, which she said was needed to find out what levels of fertilizer were in their soil.

The move to precision fertilizer application did come with some additional costs, as it is a few dollars per acre more expensive for VRT applications. On the other hand, Cox said they are saving money by not having the mixing costs associated with a broadcast application of fertilizer.

"We do have to pay for more precise soil tests and VRT, but we think the benefits outweigh the costs," she said.

Retail fertilizers are lower compared to a year earlier. Only three of the eight major fertilizer are double digits lower.

10-34-0 is 22% lower from a year ago while both potash and UAN32 are 11% less expensive. Both DAP and anhydrous are 9% less expensive, MAP is 8% lower, UAN28 is 7% less expensive and urea is 3% compared to year earlier.

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 2010 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
Feb 22-26 2016	477	492	373	371
Mar 21-25 2016	475	501	371	390
Apr 18-22 2016	477	502	366	388
May 16-20 2016	476	501	365	384
June 13-17 2016	469	496	359	367
July 11-15 2016	467	496	358	360
Aug 8-12 2016	453	482	344	345
Sept 5-9 2016	446	464	325	325
Oct 3-7 2016	438	451	312	315
Oct 31-Nov 4 2016	436	451	314	319
Nov 28-Dec 2 2016	435	445	318	331
Dec 26-30 2016	431	443	321	336
Jan 23-27 2017	429	443	322	347
Feb 20-24 2017	433	452	332	359
LIQUID
Date Range	10-34-0	ANHYD	UAN28	UAN32
Feb 22-26 2016	566	536	260	309
Mar 21-25 2016	561	569	276	312
Apr 18-22 2016	561	588	274	322
May 16-20 2016	558	588	274	321
June 13-17 2016	555	566	266	305
July 11-15 2016	538	547	266	306
Aug 8-12 2016	528	522	249	299
Sept 5-9 2016	478	502	228	274
Oct 3-7 2016	454	472	224	263
Oct 31-Nov 4 2016	452	471	244	262
Nov 28-Dec 2 2016	447	465	217	256
Dec 26-30 2016	437	466	217	254
Jan 23-27 2017	436	480	235	268
Feb 20-24 2017	440	490	241	276

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

Follow Russ Quinn on Twitter @RussQuinnDTN

(AG/SK)

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