Fertilizer Prices See “Gradual Increase”

by

OMAHA (DTN) — Sounding like a broken record, retail fertilizer prices tracked by DTN for the third week of April 2011 show prices moved little once again, with the continuing exception of 10-34-0.

The starter fertilizer was 7{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} higher, compared to the third week of March. Its average price now stands at $777 per ton.

Potash, UAN28 and UAN32 all had higher prices than a month earlier, albeit just slightly higher. Potash had an average price of $599/ton, UAN28 $373/ton and UAN32 $422/ton.

DAP, urea and anhydrous were just slightly lower than the third week of March. DAP averaged $676/ton, urea $488/ton and anhydrous $742/ton.

The price of MAP remained the same as the previous month. MAP’s average price was $701/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.53/lb. N, anhydrous $0.45/lb. N, UAN28 $0.67/lb. N and UAN32 $0.66/lb. N.

In a farmdoc daily online newsletter generated by the University of Illinois from April 15 titled “Fertilizer Prices Continue Gradual Increase,” Extension farm management specialist Gary Schnitkey reported a steady increase in Illinois fertilizer prices so far in 2011.

Using the Illinois Production Cost Report from USDA Market News, which can also be found in the DTN fertilizer segment, Schnitkey reported anhydrous has an average price in the state of $797 per ton, $687 for DAP and $598 per ton for potash. This was an increase of $20 per ton for anhydrous, $15 per ton rise for DAP and $33 per ton increase for potash since the first of the year.

Schnitkey also pointed out the higher per-acre fertilizer costs in corn production, using application rates of 180 pounds per acre of anhydrous, 170 pounds of DAP and 85 pounds of potash in corn. Corn fertilizer costs were $113 per acre in August 2010, and now the same fertilizer would cost $151 per acre, an increase of $38 per acre over the August costs.


Schnitkey wrote that fertilizer prices increased during the same time that corn and soybean prices have climbed and gives reasons for this possible correlation.

“Several explanations exist for the simultaneous increases. Commodity price increases lead to more row-crop acres and increasing fertilizer use, thereby causing fertilizer price increases,” Schnitkey said. “Higher commodity prices also suggest an increased ability of farmers to pay for inputs, potentially leading to higher input prices.”

The University of Illinois farmdoc newsletter can be found at http://www.farmdocdaily.illinois.edu/….

All eight major fertilizers are now showing double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer skyrocketed in recent weeks and is now 97{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} higher, compared to the third week of April 2010.

Anhydrous has climbed 57{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2}, while UAN32 is up 51{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} and UAN28 is 40{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} more expensive than last year. Both MAP and DAP are now 36{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} higher more expensive, urea is 19{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} higher and potash is 16{dfeadfe70caf58f453a47791a362966239aaa64624c42b982d70b175f7e3dda2} more expensive higher than one 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 nearly 150 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

© Copyright 2011 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

Posted with DTN Permission by Haylie Shipp

 

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x