By Russ Quinn
DTN Staff Reporter
OMAHA (DTN) -- Large decreases in average retail fertilizer prices were seen the second week of August 2019, according to retailers surveyed by DTN. This marks the first time in a couple of years that prices have declined in unison.
Prices for all eight of the major fertilizer were lower from the prior month with half down by a considerable amount.
Leading the way lower were anhydrous and UAN32, which both were down 7% from last month. Anhydrous had an average price of $543 per ton while UAN32 had a price of $295 per ton.
Prices for both MAP and UAN28 were also significantly lower, down 6% from the previous month. The phosphorus fertilizer (MAP) had an average price of $503 per ton and UAN28 was at $258 per ton.
Prices for the remaining four fertilizers were down from last month, but not by a significant amount. DAP had an average price of $493/ton, potash $387/ton, urea $413/ton and 10-34-0 $475/ton
On a price per pound of nitrogen basis, the average urea price was at $0.45/lb.N, anhydrous $0.33/lb.N, UAN28 $0.46/lb.N and UAN32 $0.46/lb.N.
Digging through the DTN/Progressive Farmer retail fertilizer price data shows it has been awhile since prices for all fertilizers have moved lower in the same week. You have to go all the way back to the second week of September 2017 -- almost two full years -- to find a week in which prices for all eight fertilizer were lower.
Each week, I write down how many fertilizers are lower and higher in price, and it took me seven steno note pads to find this information.
Looking at this time frame, during the entire months of August and September 2017, a majority of retail fertilizer prices were lower, according to the data. This represents the last major move lower in the retail fertilizer market.
Prices for a couple fertilizers have either moved or could move into interesting territory soon if this price trend continues.
UAN32's price, for example, was at $295 per ton last week, the first time the fertilizer's price has been under $300 per ton since the first week of December 2018 when the price was at $293 per ton.
The price of MAP last week was at $503 per ton. If it drops below $500 per ton, it would be the first time since the fourth week of February 2018 when the price was at $497 per ton.
Retailers have told me quite often over the last couple of years that retail fertilizer prices never "reset" themselves, which was why prices were higher. Previously, the normal pattern was for retail fertilizer prices to move higher in the fall and spring due to increased demand and then decline in the summer and winter with lower demand. However, prices haven't followed this pattern for the last several years for some reason.
Now, for the first time in almost two full years, it appears retail fertilizer prices are seeing a uniform price decline. In a world full of negative agricultural news, this might be one piece of good news for crop producers if prices continue to decrease.
With prices significantly lower this week, one fertilizer's price is now lower than it was a year ago. MAP is now 1% less expensive from last year at this time.
Seven of the eight major fertilizers continue to be higher compared to last year. DAP is 1% higher, 10-34-0 is 7% more expensive, both potash and UAN32 are now 9% higher, UAN28 is 11% more expensive, anhydrous is 13% higher and urea is 14% more expensive compared to last year.
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.
|Aug 13-17 2018||487||508||356||363|
|Sep 10-14 2018||491||518||362||380|
|Oct 8-12 2018||501||523||365||393|
|Nov 5-9 2018||506||529||368||407|
|Dec 3-7 2018||501||529||369||410|
|Dec 31-Jan 4 2019||508||533||381||407|
|Jan 28-Feb 1 2019||513||536||384||407|
|Feb 25-Mar 01 2019||511||535||386||404|
|Mar 25-29 2019||509||534||385||401|
|Apr 22-26 2019||497||530||388||408|
|May 20-24 2019||497||527||392||428|
|Jun 17-21 2019||496||532||392||435|
|Jul 15-19, 2019||497||532||392||430|
|Aug 12-16 2019||493||503||387||413|
|Aug 13-17 2018||446||481||233||271|
|Sep 10-14 2018||449||487||238||278|
|Oct 8-12 2018||452||488||238||280|
|Nov 5-9 2018||458||517||245||287|
|Dec 3-7 2018||457||524||249||293|
|Dec 31-Jan 4 2019||460||571||267||304|
|Jan 28-Feb 1 2019||468||585||271||313|
|Feb 25-Mar 01 2019||470||596||270||318|
|Mar 25-29 2019||470||597||269||318|
|Apr 22-26 2019||483||594||268||315|
|May 20-24 2019||487||595||270||314|
|Jun 17-21 2019||487||589||270||318|
|Jul 15-19, 2019||485||585||275||317|
|Aug 12-16 2019||475||543||258||295|
Russ Quinn can be reached at email@example.com
Follow him on Twitter @RussQuinnDTN
© Copyright 2019 DTN/The Progressive Farmer. All rights reserved.