Fertilizer

[HFL]

We are thinking its time to lock in Fertilizer prices for 2013. 46-0-0 at 580 per tonne. 11-52 at 740. per tonne. What prices are others finding? Is this the time to lock it in or are prices going lower? One fellow said that due to drought and low water levels fertilizer can't be brought up the Mississippi any more and thats going to start driving prices higher. Your thoughts?

[hobbyfrmr]

supliers will say anything to lock in a sale. Next thing will be China and India have stepped into the market and are buying the supply. We may be short.
At the price of your grains, they find it cheaper to import fertilizer and grow more on their own soil. Then the chequebooks hit the table!

Does the price today fit in your cost of production budget? Have you done a cost of production budget? Can you buy more N if you act today? Is there an income tax saving if you act today?

If you answered yes to 3 of these questions, then buy today.

Some other thoughts are, how much will you save on income tax? This saving can be used to help pay for the fertilizer, or buy more at the same price.

Are you willing to pay more if you do not buy today?

[HFL]

Yes, we know our cost of production and yes, these prices can fit into those costs. Lower prices would fit better of course. Our year end is not Dec 31 so the tax savings are the same if we buy in January or December. We were planning to wait til January thinking that prices will be lowest then. Now I'm not so sure.

[RD414]

HFL, don't know where you are located, here in westcentral Sask. we are at 595 for 46 and 700 for 11-51. your 11-52 is worth another $10. These are prices offered this week as well as what is showing up on Larry Weber's fertilizer buddy

[LWeber]

This week:

46-0-0 as low as 575
11-52 as low as 695

[errolanderson]

opinion for what it's worth . . . but
expect fertilizer prices to drop longer-
term as the price of corn drops. Also
added plant production coming on-line.
Natural gas has virutally no impact (IMO).

Mississippi may have short-term affect,
but input prices may be on the way down in
2013.

[Partners]

Prices vary as some dealers charge $8-$10 per ton for blending...

[LEP]

Errol, just a question. Where is the new capacity coming on line
before spring?

All the announcements that I have seen are for future plants not
yet built and won't likely have production for a few years.

I know one of the earliest announcements was Yara at Belle
Plain and it isn't online until the second half of 2016.

[seabass]

$680-P
$560-N
$565-K
All picked up now.

[westsider]

seabasss - where are you at. spend alot of time talking to friends across western canada and have not heard of that value on 46-0

dont have to say who it is but is it line or independent?

thanks