DTN writer Russ Quinn reported this week that, “Retail fertilizer prices continue to be mostly higher the second week of January 2022, according to retailers surveyed by DTN.
However, for the first time in more than 13 months, a fertilizer was actually lower than a month ago.
“None of the eight major fertilizers were up a considerable amount, another new trend. DTN designates a significant move as anything 5% or more.”
Quinn explained that, “Seven of the eight major fertilizers were slightly higher. DAP had an average price of $863 per ton, potash $807/ton, urea $913/ton (all-time high), 10-34-0 $796/ton, anhydrous $1,430/ton (all-time high), UAN28 $584/ton (all-time high) and UAN32 $679/ton (all-time high).
“One fertilizer was actually lower compared to a month ago; this is the first time this has happened since the first week of December 2020. MAP was down just slightly and had an average price of $932/ton.”
The DTN article added that, “Higher costs for inputs like fertilizer, as well as fuel and transportation, are pressuring farmers’ budgets globally, even as grain futures remain at high levels not seen in several years.
— St. Louis Fed (@stlouisfed) January 20, 2022
“Retail fertilizer prices compared to a year ago show all fertilizers have increased significantly, with several fertilizers having well over 100% price increases.”
Also this week, Rhiannon Branch reported at Brownfield that, “Some fertilizer experts expect prices to mellow soon, but the question is how much?
“Josh Linville, Director of Fertilizer with StoneX tells Brownfield he expects fertilizer prices to come back down in late spring.
‘We will see a reset. Prices will come down in the summer. We are not going to stay where we are at today- it is not sustainable. But, I don’t think we will see the values we saw a couple of summers ago in 2020.’
Meanwhile, Iowa State University (ISU) Extension recently released its Estimated Costs of Crop Production in Iowa for 2022.
A summary of crop production costs from the ISU report is available here:
Estimates indicate that production costs for corn and soybeans are higher than a year ago.