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DTN Retail Fertilizer Trends
OMAHA (DTN) -- Fertilizer prices tracked by DTN continued to change very little during the third week of November 2011. Five of the eight major fertilizers were higher compared to one month earlier, but none of the fertilizers rose any significant amount. DAP had an average price of $714/ton, 10-34-0 $823/ton, anhydrous $819/ton, UAN28 $408/ton and UAN32 $462/ton. Two fertilizers were slightly lower compared to the third week of October. MAP had an average price of $742/ton and urea $619/ton. One fertilizer, potash, was nearly identical compared to one month earlier with an average price of $661/ton. On a price per pound of nitrogen basis, the average urea price was at $0.67/lb.N, anhydrous $0.50/lb.N, UAN28 $0.73/lb.N and UAN32 $0.72/lb.N. With prices steady, there's little incentive right now for growers to forward contract fertilizer for 2012. Joel Abeln, who farms near New Cambria, Mo., is in the midst of the fall fertilizer application season. After a wet fall prevented much fertilizer from being applied on his north-central Missouri farm last year, he is hoping to get more applied this fall. "We are hoping to get all of our P and K applied this fall and roughly 80% of the anhydrous in the ground as well," Abeln told DTN. "This is after last fall when we only got about 20% of fertilizer on." Abeln said he usually does not pre-purchase his fertilizer needs. Only one year in the last five years did he pre-book any fertilizer for his acres. Concern about financing inputs for another crop before the previous crop is even sold is high at the top of his list of reasons why he does not pre-purchase fertilizer. "We are still a pretty youthful organization in a very capital-intensive business," he said. "We need to upgrade some equipment, and to tie up cash for six to nine months in fertilizer is just not something I am comfortable with at this time." Six of the eight major fertilizers continue to show double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. Prices for this starter fertilizer skyrocketed early this year, but have fallen back some in recent months. It is now 55% higher compared to the third week of November 2010. Urea has jumped 31% while potash has increased 25% from a year ago and UAN32 21%. UAN28 is now 19% higher and anhydrous 16% compared to year earlier. The two phosphorus fertilizers continue to bring up the rear. MAP is 8% more expensive while DAP is 7% higher compared to November of 2010. 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 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time. DTN's average of retail fertilizer prices from the third week of the month ($ per ton).
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