DTN Retail Fertilizer Trends

OMAHA (DTN) -- Retail fertilizer prices continue to be mostly lower, although DAP and MAP prices are notable exceptions, according to prices tracked by DTN for the fourth week of August 2020.

As has been the case for the last couple of weeks, six fertilizers were lower in price compared to last month. None were down a significant amount, which DTN designates as 5% or more. Potash has an average price of $352/ton, down $6; urea $355/ton, down less than $1; 10-34-0 $464/ton, down $1; anhydrous $442/ton, down $12; UAN28 $219/ton, down $4; and UAN32 $258/ton, down $4.

Two fertilizers, DAP and MAP, were higher in price than last month. DAP was up significantly, or 5%, with an average price of $430/ton. That's an increase of $20 per ton. MAP was up $6/ton with an average price of $435/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.27/lb.N, UAN28 $0.39/lb.N and UAN32 $0.40/lb.N.

One reason many farmers will try to buy fertilizer early is to hedge against the risk of price increases in the retail fertilizer market. John Oehlerking, a farmer from Elmwood, Neb., said he likes to know that he will have one major input cost covered and will do more price locking as the fertilizer pricing becomes available.

"This gives me a lot better chance of success," Oehlerking told DTN. "Yes, there have been years where that has worked against me but not very often."

Oehlerking said he has already locked in MAP at $375/ton with payment in full. He could have locked it in for $20/ton more without the full payment, but he opted for the lower price. He was also able to lock in a low interest rate with the supplier, he said.

He has not locked in any anhydrous. He applies the nitrogen fertilizer in the spring on his southeastern Nebraska farm, and the anhydrous contract for spring applications is not available yet, he said.

In addition, he has already marketed some corn and soybeans for the 2021 crop year as price increase opportunities have arisen, he said. His plan is to do more as the year progresses and as more inputs are purchased.

"The corn price may increase and fertilizer will probably follow rapidly," he said.

Retail fertilizer prices continue to be considerably lower in price from a year ago. Anhydrous is 16% lower, both urea and UAN28 are 14% less expensive, DAP is 13% lower, MAP is 12% less expensive, UAN32 is 11% lower, potash is 9% less expensive and 10-34-0 is 1% lower from last year at this time.

DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to 2010 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

Russ Quinn can be reached at [email protected]

Follow him on Twitter @RussQuinnDTN

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