Fertilizer prices look to be leveling off.
DTN reports that, while prices for all eight of the major fertilizers were higher at the end of April compared to March, none were significantly higher. Prices have been on a rise since last September.
Considering the historical pricing charts for anhydrous ammonia, one ag economist says that it is amazing how well correlated they are to the price of corn.
According to Gary Schnitkey with University of Illinois Extension, “They do track each other really closely and that is one of the things that we see in all these input costs but nitrogen and corn costs are 0.78 correlation which is really high. We would be anticipating all costs to increase for 2022 including cash rents. So, if this period of higher prices were to persist into the fall the corn and soybean prices are likely to prompt cash rent increases.”
DTN says that the average retail price of anhydrous was $710 dollars per ton during the last week of April. That is up 4 percent from the previous month.
Related:
Why fertilizer prices are through the roof