Crop Production

DTN Retail Fertilizer Trends Mixed Moves in Retail Fertilizer Prices 3/27/2019 | 8:37 AM CDT

By

Russ Quinn, DTN Staff Reporter
Original Article can be found here: https://www.dtnpf.com/agriculture/web/ag/news/crops/article/2019/03/27/mixed-moves-retail-fertilizer-prices-2

OMAHA (DTN) — Retail fertilizer price movement continued to be mixed the third week of March 2019, according to retailers surveyed by DTN. This marked the fourth week in a row in which at least some prices declined.

Prices for half of the eight major fertilizers were slightly lower compared to last month. DAP had an average price of $509 per ton, MAP $533/ton, urea $401/ton and UAN28 $270/ton.

The other half of fertilizers were slightly higher in price. Potash had an average price of $386/ton, 10-34-0 $470/ton, anhydrous $597/ton and UAN32 $318/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.44/lb.N, anhydrous $0.36/lb.N, UAN28 $0.48/lb.N and UAN32 $0.50/lb.N.

With spring fieldwork set to begin soon, nitrogen application trips across the Midwest will be occurring. More nitrogen than usual will be applied this spring because of wet weather limiting application last fall.

But before producers start applying nitrogen, they may want to consider reducing the amount they apply this spring as a way to save money, according to a recent report in the University of Illinois Farmdoc Daily e-newsletter. Gary Schnitkey from the university’s department of agricultural and consumer economics and Laura Gentry from the department of natural resources and environmental sciences wrote an article in the newsletter on March 18 titled “The Economic Advisability of Lowering 2019 Nitrogen Application Rates on Corn.”

The pair wrote that two overriding economic factors suggest the urgency in lowering nitrogen rates this spring. The first is that net incomes on Illinois farms could be extremely low in 2019. Projections indicate average income on grain farms enrolled in Illinois Farm Business Farm Management (FBFM) could be minus $55,000, the lowest average income since FBFM began collecting consistent income data starting in the 1970s.

“Given these low incomes, reducing costs is crucial, particularly if those costs do not increase revenue,” Schnitkey and Gentry wrote.

Secondly, nitrogen fertilizer prices have increased and will be at a level above the prices the last three years. A higher nitrogen price suggests lowering applications, particularly given that the 2019 expected corn price is roughly at the same level as in 2017 and 2018, the two wrote.

The maximum return to nitrogen (MRTN) rates are available from the Corn Nitrogen Rate Calculator, a website maintained by universities in the Corn Belt states. The MRTN gives the nitrogen rate that, over time, will produce the highest economic return for nitrogen use.

Click this link to use the calculator:

For corn following soybeans, anhydrous in northern Illinois has a recommended rate of 157 pounds per acre, central is 174 lbs./acre and south is 180 lbs./acre. For UAN28, north is 144 lbs./acre, central is 163 lbs./acre and south is 166 lbs./acre.

In corn following corn for anhydrous, the north and central recommendations are 200 lbs./acre, while south is 193 lbs./acre. For UAN28, the north is 186 lbs./acre, central is 188 lbs./acre and south is 180 lbs./acre.

“Applications of nitrogen in the MRTNs have additional costs,” Schnitkey and Gentry wrote. “Given the nitrogen prices above, every 10-pound application of actual nitrogen applied above the MRTN has a cost of $3.70 per acre for anhydrous and $5.00 per acre for UAN28.”

You can read the entire Farmdoc Daily report here:

All eight of the major fertilizers are now higher compared to last year with prices shifting higher. MAP is 6% more expensive, both DAP and urea are 9% higher, potash is 10% more expensive, 10-34-0 is 11% higher, UAN28 is 14% more expensive, UAN32 is 18% more expensive and anhydrous is now 19% higher 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.

DRY
Date Range DAP MAP POTASH UREA
Mar 19-23 2018 469 504 349 368
Apr 16-20 2018 484 502 353 368
May 14-18 2018 483 505 354 368
Jun 11-15 2018 484 505 354 364
Jul 9-13 2018 485 504 354 366
Aug 6-10 2018 487 507 356 363
Sep 3-7 2018 488 514 358 366
Oct 1-5 2018 501 523 364 389
Oct 29-Nov 2 2018 506 528 366 408
Nov 26-30 2018 501 530 369 409
Dec 24-28 2018 507 533 379 407
Jan 21-25 2019 512 535 383 409
Feb 18-22 2019 512 536 385 404
Mar 18-22 2019 509 533 386 401
LIQUID
Date Range 10-34-0 ANHYD UAN28 UAN32
Mar 19-23 2018 422 503 236 269
Apr 16-20 2018 431 508 240 275
May 14-18 2018 439 510 241 276
Jun 11-15 2018 440 503 241 277
Jul 9-13 2018 443 505 242 279
Aug 6-10 2018 445 482 233 271
Sep 3-7 2018 446 480 232 271
Oct 1-5 2018 451 488 237 279
Oct 29-Nov 2 2018 457 505 245 285
Nov 26-30 2018 457 519 246 287
Dec 24-28 2018 457 568 266 303
Jan 21-25 2019 467 584 270 313
Feb 18-22 2019 470 596 271 317
Mar 18-22 2019 470 597 270 318

Follow him on Twitter @RussQuinnDTN

(AG/BAS)

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