DTN Retail Fertilizer Trends
Russ Quinn DTN Staff Reporter
Fertilizer prices continue to show very little movement, according to DTN’s retailer survey for the third week of February 2011
While prices of all eight major fertilizers edged higher compared to a month earlier, the actual increase in price was extremely small. DAP averaged $675/ton, MAP $699/ton, potash $578/ton, urea $491/ton, 10-34-0 $665/ton, anhydrous $736/ton, UAN28 $356/ton and UAN32 $409/ton.
While fertilizer retailers say both prices and product movement are stable at the moment, they continue to caution that fertilizer prices could again move higher as planting season begins in earnest.
In a Hefty Seed Company e-newsletter, fertilizer specialist Rob Fritz writes that liquid fertilizer could be on the move as spring approaches.
“Nitrogen prices are on the move up. We are looking at problems with supply on liquid N for this spring. Suppliers are cutting supplies to the wholesale market due to plant shutdowns in Oklahoma, and higher commodity pricing is increasing the cost of the existing inventory,” Fritz wrote in the Equipment and Fertilizer Gazette.
Daniel Davidson, DTN contributing agronomist, also expects pressure on nitrogen prices. This is especially true for liquid fertilizer because of the ease of use for most farmers, he said.
“I think with strong corn prices and interest from farmers to plant more corn, we are going to see a run on nitrogen fertilizer, which will push nitrogen prices higher,” Davidson said.
All eight major fertilizers are now showing double-digit increases in price compared to one year earlier. Leading the way higher is now 10-34-0. The starter fertilizer has skyrocketed in recent weeks and is now 68 percent higher compared to the third week of February 2010.
Anhydrous has now climbed 58 percent, UAN28 50 percent, UAN32 46 percent, DAP 44 percent, MAP 41 percent and urea 15 percent above one year earlier.
Rounding out the higher prices is potash, which is 14 percent higher.
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.
Russ Quinn can be reached at email@example.com
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Posted with DTN Permission by Haylie Shipp