Fertilizer Prices Continue to Climb


by Russ Quinn, DTN Staff Reporter

OMAHA (DTN) — Retail fertilizer prices continue to show strength with corn planting in some areas at full stride, according to retailers tracked by DTN for the first week of May 2014. This marks the twelfth consecutive week all retail fertilizer prices were higher.

Only one fertilizer was up a significant amount. 10-34-0 was up 7{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e} compared to a month earlier as corn planting continues to ramp up. The starter fertilizer had an average price of $551/ton.

The remaining seven fertilizers were higher compared to a month earlier, but the move to the high side was fairly insignificant. DAP had an average price of $595/ton, MAP $631/ton, potash $479/ton, urea $559/ton, anhydrous $698/ton, UAN28 $353/ton and UAN32 $406/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.61/lb.N, anhydrous $0.43/lb.N, UAN28 $0.63/lb.N and UAN32 $0.63/lb.N.

Fertilizer deliveries this spring have been delayed in the Northern Plains as the railroads are moving oil from the Bakken region of North Dakota and have not been able to ship as much grain and fertilizer. This has been most evident in North Dakota, but it hasn't been limited to just one state.

Andy Barta, assistant manager of Rio Creek Feed Mill located in Rio Creek, Wis., also has seen these railroad delays for many months. Being a feed mill, he saw the delay more on the feed ingredient side, but there were fertilizer delivery delays as well.

“We had a very difficult time getting oats and canola from Canada this winter for the dairies in our area,” Barta told DTN. “On the fertilizer side, there were some delays, but the weather has kept us from getting out and applying fertilizer anyway.”

Barta said the weather delays all started with a late harvest last fall. This meant fall tillage and manure hauling was not accomplished in the fall. Then the late spring, thanks to Mother Nature and a lot of snow this winter, pushed back tillage, manure and fertilizer application as well as planting.

Soft red winter wheat fertilizer application in the spring was significantly delayed as well. While some corn acres have been planted in their home region of Kewaunee County, Barta figures it has not been much.

Despite all of these weather delays, Barta said farmers in his region, about 25 miles east of Green Bay, are not too worried — yet.

“We are not in panic mode yet,” he said. “With all the dairies in the area, a lot of the corn is going to be silage. If it gets late, and I am talking mid-June, most guys will still plant corn, live with less tonnage and feed some more corn to the dairy cows.”

With fertilizers moving higher in recent months, five of the eight major fertilizers are now double-digits lower in price compared to Apr/May of 2013.

Urea is now down 2{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e}, DAP is 3{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e} lower and MAP 4{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e} less expensive. Both UAN32 and 10-34-0 are now down 10{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e}, UAN28 is down 12{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e} and both potash and anhydrous are now 18{0a3336b3da8cf935de4f3eb78fe29508c4b8b5ebd27d01af2d815614325d533e} less expensive than a year earlier.

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.


© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.

Posted with DTN Permission by Haylie Shipp



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