OMAHA (DTN) — Prices for urea and UAN solutions continue to rise, according to retail fertilizer prices tracked by DTN for the third week of April 2012.
Six of the eight major fertilizers were higher compared to a month earlier. Urea led the way once again, now posting higher prices for seven weeks in a row. The nitrogen fertilizer was 18{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher compared to the third week of March and had an average price of $738/ton.
DTN’s average price for urea has climbed $185/ton during the last 10 weeks. Two months ago, during the week of Feb. 20-24, the average price was just $553/ton.
Also appreciably higher again were the UAN solutions. UAN28 was 12{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} more expensive and UAN32 was 15{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher compared to month ago. UAN28 had an average price of $425/ton while UAN32 was at $483/ton.
In addition, MAP, potash and anhydrous were higher as well. All three fertilizers were up just slightly with MAP having an average price of $697/ton while potash was at $662/ton and anhydrous was at $766/ton.
The remaining two fertilizers were lower compared to a month ago but really not by any significant amount. DAP had an average price of $637/ton and 10-34-0 was at $787/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.80/lb.N, anhydrous $0.47/lb.N, UAN28 $0.76/lb.N and UAN32 $0.75/lb.N.
Retailers continue to report skyrocketing urea prices as well as increasing UAN prices as the fertilizers are currently being applied and replacement product prices are higher. Ernie Klug, an agronomist with Co-Alliance located in Buchanan, Mich., said while prices are rising, many of farmer/customers already had their fertilizer prices locked in.
“A lot of our farmers had already pre-paid for their fertilizer earlier so they should be okay with these rising nitrogen prices,” Klug told DTN.
Klug said he thinks UAN prices could be higher for the foreseeable future. With the product available for many different trips across the field (pre-plant, post-plant and sidedressing operations), the nitrogen fertilizer’s price could stay up for some time.
“UAN is probably our most popular form of nitrogen,” he said. “I don’t think you are going to see it go down (in price) any time soon.”
Four of the eight major fertilizers are still showing double-digit increases in price compared to one year earlier. Leading the way higher is urea. The nitrogen fertilizer is 51{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher compared to last year while UAN32 jumped 15{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher, UAN28 is 14{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} more expensive and potash is 11{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher compared to the second week of April 2011.
Two fertilizers have seen just slight price increases compared to a year earlier. Anhydrous is now 3{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} more expensive and 10-34-0 is 1{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} higher compared to last year at this time.
The two remaining fertilizers, DAP and MAP, are now actually priced lower compared to one year ago. DAP is now 6{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} lower while MAP has decreased 1{fd15d42d1b024b97d6d50958be27cc8145b6addb99e015780abccf2984117bb0} in price.
© Copyright 2012 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.
Posted with DTN Permission by Haylie Shipp
