DTN Fertilizer Trends: Low P & K Prices Offer Opportunity to Build Up Field Rates

Retail fertilizer prices continued to move lower the fifth week of August 2017, according to fertilizer retailers surveyed by DTN.

All eight of the major fertilizers were lower compared to last month. But, like last week, only two were down by any significant amount. UAN32 was 6% lower compared to the previous month and had an average price of $248 per ton. UAN28 was also lower, down 5% compared to last month. UAN28 had an average price of $215/ton.

The remaining six fertilizers were just slightly lower compared to last month. DAP had an average price of $433/ton, MAP $457/ton, potash $338/ton, urea $303/ton, 10-34-0 $418/ton and anhydrous $417/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.33/lb.N, anhydrous $0.25/lb.N, UAN28 $0.38/lb.N and UAN32 $0.39/lb.N.

In a post titled “Fertilizer price trends in 2017,” Michigan State University (MSU) Extension senior educator wrote about what retail fertilizer prices have done so far this year. As one might expect, the author stated that prices are on the low side so far in 2017.

“The current prices of all fertilizers are 5 to 15% lower than the corresponding 2015-2016 prices,” Silva wrote. “The prices remained low and stable. The fertilizer industry is historically cyclical and currently going through a down cycle.”

Silva wrote that MSU Extension advises farmers to be aware of fertilizer price fluctuations and to take advantage of purchasing options when prices are low.

He specifically pointed out that some farmers will pre-order phosphorus (P) and potash (K) to take advantage of lower off-season prices. The lower prices for P and K should be an incentive for farmers to build up rates on fields that are below the critical soil-test levels, Silva wrote.

“Despite the current fertilizer market stability, unforeseen changes in the global demand or supply may cause price fluctuations,” he wrote.

The entire MSU report can be viewed here.

All but one retail fertilizer are lower compared to a year earlier. Three of the eight major fertilizers are double digits lower.

Anhydrous is now 18% lower from a year ago, while 10-34-0 is 15% less expensive and UAN32 is 10% lower. UAN28 is 8% less expensive, urea is 7% lower, DAP is 4% less expensive and MAP is 2% lower.

The one fertilizer that is higher compared to last year is potash, which is now 3% more expensive.

DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to 2010 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

DTN’s average of retail fertilizer prices from a month earlier ($ per ton):

Russ Quinn can be reached at russ.quinn@dtn.com

Follow Russ Quinn on Twitter @RussQuinnDTN