by Russ Quinn, DTN Staff Reporter
OMAHA (DTN) — For the fifth week in row, fertilizer prices continue to show little movement according to retailers tracked by DTN. The sizeable drop in commodity prices over the last three weeks may have some farmers waiting to see if fertilizer prices will drop as well.
Seven of the eight major fertilizers showed a higher price compared to the second week of August, but the increase is very small. DAP had an average price of $705/ton, MAP $725/ton, potash $642/ton, urea $605/ton, anhydrous $801/ton, UAN28 $401/ton and UAN32 $446/ton.
The remaining fertilizer, 10-34-0, was just slightly lower in price compared to the second week of August. The starter fertilizer’s average price was $792/ton.
On a price-per-pound-of-nitrogen basis, the average urea price was at $0.66/lb.N, anhydrous $0.49/lb.N, UAN28 $0.72/lb.N and UAN32 $0.70/lb.N.
Steve Lias, general manager of Farmers Elevator Company of Humboldt, S.D., said farmers in the southeastern area of the state have been reluctant to lock in fertilizer prices in recent weeks during a time when many traditionally book at least some of their fertilizer needs.
“We have our fall price set now for a while but our customers really do not seem interested in locking in some of their fertilizer needs, at least not at these prices,” Lias said.
Some producers may believe since commodity price have taken a step back over the last three weeks, fertilizer may also be in line to do the same in the coming weeks. Lias said he would like to see this happen but does not know if the lower prices will occur.
“Talking to guys they are really hoping prices pull back some like commodities prices have,” he said. “Specifically they would like to see the anhydrous and urea prices drop some considering how high they climbed over the course of the year.”
All eight major fertilizers are now showing double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. The starter fertilizer has skyrocketed in recent months and is now 73{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher compared to the second week of September 2010.
Urea has now climbed 45{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} while UAN32 is up 42{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} and UAN28 has increased 35{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3}. Potash is now 33{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher while anhydrous has increased 32{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3}. Bringing up the rear are the phosphate fertilizers. MAP climbed 25{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher while DAP jumped 24{e7e4ba4d9a3c939171d79cae1e3a0df1d41e5a91c3c4158fbb92284b490bc9d3} higher compared to one year earlier.
DTN Pro Grains subscribers can find current retail fertilizer price in the new DTN Fertilizer Index on the Fertilizer page under Farm Business.
DTN collects fertilizer prices from just over 280 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
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Posted with DTN Permission by Haylie Shipp
