DTN Retail Fertilizer Trends

OMAHA (DTN) -- Average retail fertilizer prices continued to be mixed the second week of September 2020, according to retailers surveyed by DTN. Just like last week, five of the eight major fertilizers were lower, while the remaining three nutrients were higher.

Also like last week, no fertilizer was up or down a significant amount, which DTN designates as 5% or more.

The five fertilizers that were slightly lower were potash with an average price of $345 per ton, down $8 from last month; 10-34-0 $459/ton, down $6; anhydrous $434/ton, down $13; UAN28 $216/ton, down $5; and UAN32 $253/ton, down $6.

The three fertilizers that were higher include DAP with an average price of $434/ton, up $8; MAP $445/ton, up $10; and urea $360/ton, up $5.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.26/lb.N, UAN28 $0.39/lb.N and UAN32 $0.39/lb.N.

Over the last several weeks, we have taken a closer look at the thought process farmers go through when they are considering pre-purchasing their fertilizer needs.

Some want to take advantage of historically lower retail prices, or maybe they want to know some of their input costs ahead of time. Others feel like they can save money in the long run by waiting to pay for their fertilizer as they use it.

And some will do a bit of both.

Robert McCain, a farmer from Kokomo, Indiana, said he normally doesn't lock any fertilizer in for the fall application season. He does, however, usually start pricing some of his fertilizer needs in February for spring application. McCain tries to set a price in the late-winter/early spring time period on for his nitrogen, phosphorus and potash needs.

"I want to keep my options open," McCain told DTN. "This is the way I've always done it and doesn't mean I'm right."

Retail fertilizer prices continue to be considerably lower in price from a year ago. Anhydrous is 16% lower, UAN28 is 15% less expensive, UAN32 is 13% lower, urea is 12% less expensive, DAP is 11% lower, potash is down 10%, MAP is 8% less expensive and 10-34-0 is 3% 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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