DTN Retail Fertilizer Trends

Fertilizer Prices Barely Budge Second Week of June

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
Connect with Russ:
The average retail price of MAP for the second week of June 2018 was $505 per ton, up about 7% from the same time last year. (DTN chart)

OMAHA (DTN) -- Retail fertilizer prices saw small changes the second week of June 2018, continuing muted price movements that have been a feature of the market this past month, according to prices tracked by DTN.

Five of the eight major fertilizers were slightly higher compared to last month, and when rounded to the nearest dollar, some appear unchanged. DAP had an average price of $484 per ton, potash $354/ton, 10-34-0 $440/ton, UAN28 $241/ton and UAN32 $277/ton.

Three fertilizers were lower than the previous month. As with the higher prices, the lower prices were just slightly lower. MAP had an average price of $505/ton, urea $364/ton and anhydrous $503/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.31/lb.N, UAN28 $0.43/lb.N and UAN32 $0.43/lb.N.

While price changes are all but absent in the United States, major changes are happening to the industry in South America.

In recent years, fertilizer manufacturers from around the globe have invested in production facilities in Brazil, since a majority of the country's fertilizer is imported.

In January 2018, Florida-based The Mosaic Company completed an acquisition of Brazilian fertilizer company Vale Fertilizantes, the largest acquisition in the company's history. Canada-based Canpotex Ltd. opened a sales office in Sao Paulo, Brazil, in April 2018 to serve the growing Brazilian market. Brazil is the largest market for Canpotex potash, according to the company's website.

Last week, Harvest Mineral Ltd. announced it's set to further develop its Arapua fertilizer project in Brazil and expand it sales in the country. The company plans on investing $12.1 million in the South American facility, according to Dow Jones.

The investment will be used to expand production capacity at the company's Arapua project and would increase Harvest Minerals' direct sales and marketing activities. The company also stated the additional investment would help identify new investment opportunities.

Harvest Mineral, with offices in Australia and the United Kingdom, is a potash and phosphate exploration and development company with four principal projects located in Brazil, according to the company's website. In addition to the Arapua fertilizer project, the company also has the Sergi potash project, the Capela potash project and the Mandacaru phosphate project.

Back in the states, six of the eight major fertilizers are now higher compared to last year with prices pushing higher in recent months. Both 10-34-0 and anhydrous are now up 1%, potash is 4% higher, MAP and urea are 7% more expensive and DAP is 11% more expensive compared to last year.

The remaining two fertilizers are lower in price compared to a year prior. UAN32 is 1% lower while UAN28 is 2% less expensive looking back a 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 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
Jun 12-16 2017 437 470 341 338
Jul 10-14 2017 436 467 340 321
Aug 7-11 2017 434 462 339 311
Sep 4-8 2017 431 458 338 302
Oct 2-6 2017 425 453 348 323
Oct 27-Nov 3 2017 434 455 348 330
Nov 27-Dec 1 2017 435 460 342 340
Dec 25-29 2017 448 488 344 348
Jan 22-26 2018 458 492 344 353
Feb 19-23 2018 460 496 345 357
Mar 19-23 2018 469 504 349 368
Apr 16-20 2018 484 502 353 368
May 14-18 2018 483 505 354 368
Jun 11-15 2018 484 505 354 364
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
Jun 12-16 2017 435 500 246 278
Jul 10-14 2017 431 451 235 268
Aug 7-11 2017 440 419 224 258
Sep 4-8 2017 418 413 215 248
Oct 2-6 2017 413 399 208 243
Oct 27-Nov 3 2017 405 401 208 262
Nov 27-Dec 1 2017 403 417 216 271
Dec 25-29 2017 407 468 216 254
Jan 22-26 2018 415 490 226 261
Feb 19-23 2018 416 495 231 265
Mar 19-23 2018 422 503 236 269
Apr 16-20 2018 431 508 240 275
May 14-18 2018 439 510 241 276
Jun 11-15 2018 440 503 241 277

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

Follow him on Twitter @RussQuinnDTN

(KD/AG)

Russ Quinn