DTN RETAIL FERTILIZER TRENDS
- BY Russ Quinn
OMAHA (DTN) -- Now the spring rush is over, fertilizer prices are settling into a holding pattern, according to retail fertilizer prices tracked by DTN for the first week of June 2012. Retailers report prices could be steady for awhile as the spring application ends and demand lessens.
Potash prices have barely budged since last September and average about $662/ton. (DTN chart)
Five of the eight major fertilizers were higher compared to a month earlier, but none were up with any consequence. Urea had an average price of $767 per ton, 10-34-0 $777/ton, anhydrous $771/ton, UAN28 $431/ton and UAN32 $487/ton.
Three fertilizers had lower retail prices compared to the first week of May, but again these price moves lower were fairly slight. DAP had an average price of $634/ton, MAP $690/ton, and potash $662/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.83/lb.N, anhydrous $0.47/lb.N, UAN28 $0.77/lb.N and UAN32 $0.76/lb.N.
The expected drop of retail urea prices might finally be occurring, just as retailers said would happen earlier this spring. For the first time since the second week of February, urea prices were actually lower compared to the previous week.
Matt Carlson, agronomy manager for Woodworth Grain located in Woodworth, N.D., said urea prices appear to be poised to fall now that demand has lessened and some supply has been built back up. Farmers in his region apply about two-thirds of their nitrogen in the form of urea.
"I saw that (wholesale) urea prices were considerably lower since the last time I looked, so I would guess the retail price will only drop," Carlson told DTN.
Most of the urea in Carlson's central North Dakota region has already been applied, although some producers may still top dress their corn acres with urea, he said.
Going forward this growing season, Carlson thinks the corn price trend will dictate fertilizer pricing.
"I think if we were to see corn drop below $4 a bushel, then fertilizer will drop," he said. "I would think this would be chance to purchase fertilizer at somewhat lower prices."
Half of the eight major fertilizers are still showing double-digit increases in price compared to one year earlier. Leading the way higher is urea. The nitrogen fertilizer is 52% higher compared to last year while UAN28 is 15% more expensive, UAN32 has jumped to 14% and potash is now 10% more expensive compared to the first week of June 2011.
One fertilizer has seen just slight price increases compared to a year earlier. Anhydrous is now 4% more expensive.
The three remaining fertilizers are now actually lower compared to one year ago. DAP is now 7% lower, 10-34-0 is 6% less expensive and MAP has decreased 2% in price.
DTN collects roughly 1,300 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to Nov. of 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
DTN's average of retail fertilizer prices from the first week of the month ($ per ton).
DRY
Date Range
DAP
MAP
POTASH
UREA
May 23-27 2011
678.65
707.33
604.08
505.09
June 20-23 2011
680.37
702.41
610.13
549.63
July 25-29 2011
692.81
717.81
625.91
575.79
Aug 22-26 2011
703.29
727.39
647.27
596.57
Sept 26-30 2011
711.21
738.09
656.15
620.13
Oct 24-28 2011
709.33
743.64
659.79
618.86
Nov 21-25 2011
714.15
743.69
661.78
626.40
Dec 26-30 2011
676.57
726.33
658.39
563.41
Jan 23-27 2012
653.66
707.96
657.52
552.97
Feb 20-24 2012
653.66
707.96
657.52
552.97
Mar 19-23 2012
645.24
694.58
655.74
628.16
Apr 23-27 2012
636.86
694.92
662.32
740.02
May 28-June 1 2012
633.89
690.44
661.59
767.35
LIQUID
Date Range
10-34-0
ANHYD
UAN28
UAN32
May 23-27 2011
821.25
744.51
376.01
425.95
June 20-23 2011
825.42
743.86
412.61
443.89
July 25-29 2011
807.92
789.49
408.61
446.43
Aug 22-26 2011
783.48
785.69
395.70
440.22
Sept 26-30 2011
813.81
794.93
406.32
454.16
Oct 24-28 2011
823.61
819.14
406.63
457.82
Nov 21-25 2011
827.27
813.69
409.94
463.24
Dec 26-30 2011
827.93
801.96
395.84
444.40
Jan 23-27 2012
809.69
773.59
384.18
429.96
Feb 20-24 2012
809.69
773.59
384.18
429.96
Mar 19-23 2012
794.43
762.07
379.92
420.41
Apr 23-27 2012
766.15
764.06
426.97
480.57
May 28-June 1 2012
775.64
771.48
431.18
486.74
