OMAHA (DTN) -- According to retail fertilizer prices tracked by DTN for the third week of August 2018, prices continue to be evenly mixed. Price for half of the eight fertilizers tracked by DTN were slightly higher while the other half were lower for the second consecutive week.
The move in either direction was fairly muted, as has been the case for several months. Urea moved lower with an average price of $364/ton, anhydrous was $481/ton, UAN28 was $233/ton and UAN32 was $271/ton.
The remaining half were slightly higher compared to last month. DAP had an average price of $487/ton, MAP $514/ton, potash $356/ton and 10-34-0 $446/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.40/lb.N, anhydrous $0.29/lb.N, UAN28 $0.42/lb.N and UAN32 $0.42/lb.N.
While there are issues with low commodity prices and profitability in agriculture today, the farm economy is not all doom and gloom. David Widmar examines some of the positives in a new post in the Agricultural Economic Insights newsletter titled, "The Farm Economy is Not All Bad News: 8 Positive Stories in 2018."
One is a lower cost of production. Widmar said over the last several years the costs of production for corn, soybeans and wheat have all adjusted lower.
"What would have been a $5 per bushel economic breakeven for corn production a few years ago has fallen to almost $4 per bushel," Widmar wrote. "Most of the reductions have come from lower fertilizer price and cash rental rates."
Lower cost of production, on average, increases the chances that farmers can sell grain at prices near or above breakeven levels, he wrote. The other seven positive areas of the farm economy include improved economics for wheat, fewer U.S. corn and soybean acres in 2018, slowing global acreage expansion, historically low farm loan delinquencies rates, gradually rising interest rates that remain historically low, stabilizing farmland values and USDA's trade assistance program.
All eight of the major fertilizers are now higher compared to last year with prices shifting higher in recent months. Potash is 6% higher, 10-34-0 is 7% more expensive, UAN28 is 8% higher, UAN32 is 9% more expensive, both MAP and DAP are 12% higher, anhydrous is 15% higher and urea is 20% more expensive compared to last year.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to 2010 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from a month earlier ($ per ton):
|Aug 21-25 2017||434||458||338||304|
|Sep 18-22 2017||429||452||345||312|
|Oct 16-20 2017||432||452||348||340|
|Nov 13-17 2017||435||459||342||339|
|Dec 11-15 2017||439||479||343||340|
|Jan 8-12 2018||456||491||346||352|
|Feb 5-9 2018||458||493||344||355|
|Mar 5-9 2018||463||503||349||367|
|Apr 2-6 2018||478||508||352||370|
|Apr 30-May 4 2018||485||505||353||368|
|May 28-June 1 2018||483||504||354||364|
|Jun 25-29 2018||485||505||354||364|
|Jul 23-27 2018||486||504||356||366|
|Aug 20-24 2018||487||514||356||364|
|Aug 21-25 2017||419||417||216||248|
|Sep 18-22 2017||416||402||211||248|
|Oct 16-20 2017||413||397||205||262|
|Nov 13-17 2017||403||410||216||272|
|Dec 11-15 2017||403||434||218||256|
|Jan 8-12 2018||410||479||220||258|
|Feb 5-9 2018||415||492||227||261|
|Mar 5-9 2018||422||499||234||272|
|Apr 2-6 2018||425||508||239||274|
|Apr 30-May 4 2018||431||510||241||277|
|May 28-June 1 2018||439||504||241||276|
|Jun 25-29 2018||440||504||242||277|
|Jul 23-27 2018||442||501||243||279|
|Aug 20-24 2018||446||481||233||271|
Russ Quinn can be reached at firstname.lastname@example.org
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