DTN Retail Fertilizer Trends
After a Pause, 10-34-0 Turns Higher Again
by Russ Quinn
Retail fertilizer prices tracked by DTN for the third week of March 2011 showed very little price movement except for 10-34-0, which after a week of little price movement continued its move higher once again.
10-34-0 prices gained 9 percent compared to the third week of February. The starter fertilizer’s average price was $724/ton.
The other seven major fertilizers were all up just slightly compared to a month earlier. DAP averaged $678/ton, MAP $701/ton, potash $591/ton, urea $492/ton, anhydrous $741/ton, UAN28 $369/ton and UAN32 $411/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 $0.66/lb. N and UAN32 $0.64/lb. N.
Kurt Guinn, manager for the Farmers Coop Grain Association located in Wellington, Kan., said most of his farmer customers factor both price and convenience when choosing which different types of nitrogen to apply.
“Our most popular forms of nitrogen are anhydrous and liquid nitrogen,” Guinn said. “They choose anhydrous because it is the most inexpensive form of nitrogen while they take liquids because this way they can tank mix it with herbicides to fertilizer and kill weeds all in one trip.”
Guinn said he believes liquids will continue to be a popular nitrogen source, especially if fuel costs continue to rise and farmers want to combine fertilizing with applying herbicides. Anhydrous use may drop some considering how unstable the gaseous fertilizer can be, he said.
“Many of our farmers have hired help and they would rather have them working with the sprayer and spraying liquid N on instead of working around anhydrous, which can be dangerous if not handled correctly,” he said.
Some of his customers will also use urea if a rain is predicted. They will apply the fertilizer right before the rain to assure the granular fertilizer absorbs into the soil, he said.
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 has skyrocketed in recent weeks and is now 83 percent higher compared to the third week of March 2010.
Anhydrous has climbed 58 percent, UAN32 44 percent, and UAN28 42 percent compared to a year ago. Both DAP and MAP are now 39 percent higher while both urea and potash are 18 percent more expensive 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.
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Posted with DTN Permission by Haylie Shipp
