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DTN Retail Fertilizer Trends
9/7/10 4:46 PM
OMAHA (DTN) -- Led by anhydrous, retail fertilizer prices tracked by DTN for the fifth week of August continue to climb. Anhydrous surged 23 percent compared to a month earlier in DTN's latest survey. The average price for anhydrous is now at $606.50 per ton. The nitrogen fertilizer has gained $140.41 per ton over the last nine weeks, when the price stood at a paltry $466.09 per ton. Following right along with anhydrous are the UAN solutions and the phosphorus fertilizers. UAN32 is up 12 percent, while UAN28 was 10 percent higher. DAP saw a 9 percent increase in price, and MAP is up 7 percent. 10-34-0 was up 5 percent, while urea was up just slightly compared to a month earlier. UAN32 had an average price of $315.00/ton, UAN28 $277.24/ton, DAP $548.37/ton, MAP $558.22/ton, 10-34-0 $418.16/ton and urea $384.73/ton. Just one fertilizer price slipped lower during this time period. Potash continues to plod along 6 percent lower compared to a month earlier. It had an average price of $466.58/ton. Farmers interviewed at the Farm Progress show in Boone, Iowa, last week were mostly positive about the upcoming size of their crops but less positive about fertilizer prices. "I stopped watching fertilizer prices closely, because every time I looked recently, they were higher," said a northeastern Iowa farmer. This farmer did not lock in any fertilizer for the fall period for multiple reasons. For one, he does not apply much fertilizer in the fall. He also applies quite a bit of hog manure to his land. While he may have to purchase some commercial N fertilizer, his nitrogen fertilizer purchases are fairly small, he said. One central Iowa farmer said he had locked in anhydrous several weeks ago, a practice he doesn't do every year but has elected to do the last couple of years to hedge against higher anhydrous prices for the fall. "I farm with my son, whose wife works at a local cooperative," he said. "She knew what was going to happen, so we went ahead and locked it in a number of weeks back. That looks like a good decision now, doesn't it?" Another farmer, who farms in the thumb area of Michigan, had been watching prices nervously. "Fertilizer prices have been moving higher recently, so we went ahead and locked some in recently," he said. He has purchased urea, phosphorus and potash for his corn, soybeans, sugar beets and wheat crops. Next, he will also look at locking prices in on starter fertilizer for next spring. Compared to one year earlier, only one fertilizer now remains down double digits. Potash leads the way lower, down 28 percent, and 10-34-0 is now 6 percent lower. In addition, urea is down just slightly compared to the last week of August 2009. Five fertilizers have shown an increase in price compared to last year. In recent weeks, anhydrous and DAP have battled for the fertilizer with the biggest prices increases. This week, DAP wins with the phosphorus fertilizer up 44 percent. Anhydrous saw an increase of 41 percent. MAP is running 38 percent higher, followed by UAN28, up 36 percent, and UAN32 is up 21 percent from a year earlier. DTN Pro Grains subscribers can find current retail fertilizer prices by location on the Fertilizer page under Farm Business. DTN collects fertilizer prices from several dozen retailers weekly. Not all fertilizer prices change each week. Prices are subject to change at any time. DTN's average of retail fertilizer prices from the fourth week of the month ($ per ton).
Russ Quinn can be reached at russ.quinn@telventdtn.com (MZT/AG) © Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved. |
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