URBANA, Ill. (RFD News) — Fertilizer prices continued a multi-week downward trend, with six of the eight major fertilizers posting lower prices than a month ago, according to DTN.
UAN 32 declined 15% from a month ago, while anhydrous ammonia fell 11%, dropping below $1,000 a ton for the first time in 17 weeks. Despite the monthly declines, all eight major fertilizers remain more expensive than a year ago. Anhydrous ammonia is up 26% over the past year, while potash has increased 3%.
A number of factors can influence fertilizer prices, but Henrique Monaco of the University of Illinois said a recent study points to industry consolidation as the primary driver.
“If you look since 2000 there was a decrease in total number of firms, but also plants operating. When it comes to who has the ammonia, specifically here production capacity in the U.S., that would be primarily CF Industries and Nutrien would be the top two. Those together here will account for roughly 55, 60 percent. The top four companies would account for 70 percent.”
Monaco said lower-cost fertilizer producers tend to outlast higher-cost competitors, often buying them out. The U.S. accounts for around 15% of the global fertilizer footprint.
