OMAHA (DTN) -- For the third week in a row, average retail fertilizer prices continued to decrease the third week of July 2017. Once again, all eight of the major fertilizers had lower prices compared to a month earlier.
Only three fertilizers had significant price drops. With the sidedressing season pretty much completed, anhydrous showed a large drop in prices, down 14% compared to last month. The nitrogen fertilizer had an average price of $425 per ton the third week of July 2017.
Also considerably lower were urea, which was 7% lower compared to the previous month, and UAN28, which was 6% less expensive. Urea had an average price of $309/ton and UAN28 $229/ton.
The remaining five fertilizers had lower prices compared to last month, but none of the price drops were significant. DAP had an average price of $435/ton, MAP $464/ton, potash $339/ton, 10-34-0 $425/ton and UAN32 $265/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.34/lb.N, anhydrous $0.26/lb.N, UAN28 $0.41/lb.N and UAN32 $0.41/lb.N.
With retail fertilizer prices falling in recent weeks, it's logical to think farmers may begin to consider locking in some fertilizer needs for the 2018 growing season. While it's perhaps still too early for some, others who want to get a jump on knowing input prices for the next growing season may be willing to pre-purchase some fertilizer.
Josh Kayser, who farms near Emery, South Dakota, said he hasn't locked in any fertilizer yet for 2018. He said his normal practice on his southeastern South Dakota operation is to wait until closer to harvest to pre-order some phosphorus (P) and potash (K).
"My guess is with (fertilizer) prices dropping, guys are holding off," Kayser told DTN.
The sagging grain market is another factor why farmers may not be very excited to lock in fertilizer prices. A rally in either the corn market or retail fertilizer market might cause some farmers to lock in some nutrients, he said.
"If we had a reason to believe a rally was coming (in the fertilizer market), I would lock a large chuck of our P and K for fall spread," he said. "And if the price was right, probably up to 50% of spring nitrogen."
Prices of all retail fertilizers are lower compared to a year earlier. Five of the eight major fertilizers are double digits lower.
Both 10-34-0 and anhydrous are now 22% lower from a year ago while both UAN32 and urea are now 13% lower and UAN28 is 12% less expensive. Both DAP and MAP are 6% lower while potash is 5% lower.
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):
|July 18-22 2016||464||493||357||357|
|Aug 15-19 2016||452||471||333||337|
|Sept 12-16 2016||444||458||320||324|
|Oct 10-14 2016||438||452||313||316|
|Nov 7-11 2016||429||449||314||323|
|Dec 5-9 2016||434||443||318||333|
|Jan 2-6 2017||431||442||322||339|
|Jan 30-Feb 3 2017||430||448||329||353|
|Feb 27-Mar 03 2017||436||458||335||361|
|Mar 27-31 2017||438||465||338||356|
|Apr 17-21 2017||438||466||339||352|
|May 22-26 2017||436||471||340||343|
|Jun 19-23 2017||436||470||340||333|
|Jul 17-21 2017||435||464||339||309|
|July 18-22 2016||546||546||260||304|
|Aug 15-19 2016||513||516||238||285|
|Sept 12-16 2016||474||496||233||272|
|Oct 10-14 2016||454||475||224||264|
|Nov 7-11 2016||447||468||217||256|
|Dec 5-9 2016||445||463||219||257|
|Jan 2-6 2017||436||465||218||255|
|Jan 30-Feb 3 2017||439||482||236||270|
|Feb 27-Mar 03 2017||440||502||246||279|
|Mar 27-31 2017||441||508||248||279|
|Apr 17-21 2017||437||509||247||280|
|May 22-26 2017||436||503||249||280|
|Jun 19-23 2017||435||497||243||273|
|Jul 17-21 2017||425||425||229||265|
Russ Quinn can be reached at firstname.lastname@example.org
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