By Beth Schweitz, DTN Associate Editor
And Marcia Zarley Taylor, DTN Executive Editor
OMAHA (DTN) — After sharp run ups earlier in the season, retail fertilizer prices hit the dog days of summer this week. DTN’s retailer survey showed most fertilizer inflation slowing and in some cases retreating modestly.
While MAP prices jumped 2.2{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} compared to a week earlier with an average price of $720/ton, 10-34-0 and DAP were only slightly higher with an average price of $819/ton for starter and $689/ton for DAP.
The weekly average price for UAN32 was $443/ton, a negligible increase over the previous week’s price.
Anhydrous recorded the biggest price drop, down 2.7{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} from last week with an average price of $758/ton. UAN28 saw a 1.7{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} decline in the weekly average price at $403/ton. Urea and potash both saw the smallest price decline — less than 0.1{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} from the previous week — with urea at $562/ton and potash at $613/ton.
On a price per pound of nitrogen basis, anhydrous still shows an unusually wide cost advantage over alternative N fertilizers. The average anhydrous price equated to $0.46/lb.N, urea $0.61/lb.N, UAN28 $0.72/lb.N and UAN32 $0.69/lb.N.
Based on advice from his Nevada, Iowa fertilizer retailer, Tim Fevold of Hertz Farm Management thinks now might be a good time to buy for fall applications. He rarely prepays this early for N, P and K on the farms he manages but expects to make an exception this year.
“We have good income and we need to apply fertilizer no matter what,” Fevold said during a break from the American Society of Farm Managers and Rural Appraisers meeting in Omaha this week. “The money is sitting in the bank and earning less than 1{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} interest, and it’s likely prices will rise by more than that. My perception is that fertilizer markets are priced on what the markets will bear, so I just have a sneaking suspicion that it will be higher come fall, maybe sickeningly higher.”
10-34-0 has led the price rally over the past year, up 105{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} over DTN’s July 2010 average price. Anhydrous has gained 62{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} during that period. UAN28 and UAN32 are both running about 50{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} more than a year ago.
Urea, MAP, and DAP prices jumped 38{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} to 44{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} above their July 2010 averages. Potash has gained 21{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3}.
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Posted with DTN Permission by Haylie Shipp
