DTN Retail Fertilizer Trends

Fertilizer Prices Steady Again

Russ Quinn
By  Russ Quinn , DTN Staff Reporter
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Except for urea, the costs of all N fertilizers have remained relatively stable over the past year, DTN's surveys of 310 retailers nationwide show. (DTN chart)

OMAHA (DTN) -- According to retail fertilizer prices tracked by DTN for the first week of June 2015, prices continue extremely steady. As has been the case in recent weeks, no fertilizers are significantly lower or higher compared to a month earlier.

Five of the eight major fertilizers gained in price compared to a month prior, but these moves were fairly minor. DAP averaged $570/ton, potash $491/ton, urea $461/ton, UAN28 $331/ton and UAN32 $371/ton.

Two fertilizers were lower compared to the previous month, but again the move down was small. DAP averaged $570/ton, MAP $597/ton and anhydrous $710/ton.

One fertilizer, MAP, was unchanged from last year's retail price.

On a price per pound of nitrogen basis, the average urea price was at $0.50/lb.N, anhydrous $0.43/lb.N, UAN28 $0.59/lb.N and UAN32 $0.58/lb.N.

Current headlines involving fertilizer usually have not been positive for the fertilizer industry. The best example may be the Des Moines Water Works suing 10 rural drainage districts in and around Des Moines and Raccoon rivers for elevated nitrate levels.

But not all the headlines with fertilizer are negative. The Fertilizer Institute (TFI) reports U.S. farmers have managed to double corn production all while only using slightly more fertilizer over the last 34 years.

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According to data from USDA's National Agricultural Statistics Service (NASS), in 1980 U.S. farmers grew 6.64 billion bushels of corn using 3.2 pounds of nutrients (N, P & K) per bushel. In 2014, corn farmers grew 14.22 bb using only 1.6 lbs of nutrients per bushel.

This represents a 114% increase in production using just 4.5% more total nutrient during the same time, TFI noted. (The TFI press release can be found at http://bit.ly/…)

"Numbers don't lie, and this trend of continuous environmental and economic performance improvement is something that agriculture should be very proud of," said Chris Jahn, TFI president. "But we are not resting on our laurels, and believe that farmers and the businesses that serve them will continue this 34-year trend of improving efficiency."

Jahn credited the widespread adoption of the 4R (use of the right fertilizer source at the right rate, right time and right place) program as an example of sustainable agriculture and which also grows farm profitability.

Only one of the eight major fertilizers are double-digits higher in price compared to June of 2014, all while commodity prices are significantly lower from a year ago; 10-34-0 is 16% higher compared to last year.

Only potash, up 2%, is slightly more expensive compared to a year earlier. One fertilizer, anhydrous, is nearly unchanged from the price from last year.

The remaining five nutrients are now lower compared to retail prices from a year ago. DAP is 4% less expensive, MAP is 5% lower, UAN28 is down 7%, UAN32 is now 8% less expensive and urea is 15% less expensive from a 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 November 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 a month earlier ($ per ton):

DRY
Date Range DAP MAP POTASH UREA
June 2-6 2014 596 631 482 544
June 30-July 4 2014 592 623 483 535
July 28-Aug 1 2014 587 610 476 519
August 25-29 2014 585 602 475 517
Sept 22-26 2014 579 600 473 510
Oct 20-24 2014 582 599 478 507
Nov 17-21 2014 576 595 480 493
Dec 15-19 2014 565 592 483 461
Jan 12-16 2015 566 594 486 465
Feb 9-13 2015 569 597 488 473
Mar 9-13 2015 570 597 489 471
Apr 6-Apr 10 2015 570 598 491 461
May 4-8 2015 570 598 491 457
June 1-5 2015 570 598 491 461
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
June 2-6 2014 562 708 357 404
June 30-July 4 2014 564 694 352 400
July 28-Aug 1 2014 542 671 339 380
August 25-29 2014 555 699 332 371
Sept 22-26 2014 555 694 329 377
Oct 20-24 2014 557 697 327 367
Nov 17-21 2014 560 709 322 366
Dec 15-19 2014 572 705 322 362
Jan 12-16 2015 582 710 325 364
Feb 9-13 2015 589 707 330 370
Mar 9-13 2015 626 706 331 371
Apr 6-Apr 10 2015 648 709 333 370
May 4-8 2015 653 711 331 371
June 1-5 2015 650 710 331 371

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

(MZT/ES)

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Russ Quinn