Retail fertilizer prices continued to move lower during the first week of October 2016, continuing the recent trend, according to retailers surveyed by DTN. All eight of the major fertilizers are lower compared to last month with only two fertilizers down a substantial amount.
Leading the way lower for the first time is anhydrous. The nitrogen fertilizer is 6% lower compared to a month earlier and has an average price of $472/ton.
The other fertilizer significantly lower is 10-34-0. The starter fertilizer is 5% less expensive from the first week of September and now has an average price of $454/ton.
The remaining six fertilizers were all lower compared to last month, but the move to the low side was fairly slight. DAP had an average price of $438/ton, MAP $451/ton, potash $312/ton, urea $315/ton, UAN28 $224/ton and UAN32 $263/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.34/lb.N, anhydrous $0.29/lb.N, UAN28 $0.40/lb.N and UAN32 $0.41/lb.N.
Declining retail fertilizer prices helped lower farmers' input costs in 2016 and now with the crops being harvested and fertilizer being applied for the 2017 growing season, many are wondering where fertilizer prices could be in the next growing season. In a post on the Agricultural Economic Insights website titled "Will Farmers Benefit from Lower Fertilizer Prices Again in 2017?" author David A. Widmar examines the possibility that even lower fertilizer prices could be seen in 2017.
The trends over the last few years show most retail fertilizer prices peaked in 2010 to 2012 and since mid-2013, prices have settled lower, he wrote.
"In fewer than two years of data, anhydrous ammonia prices went from $725 per ton in early 2015 to nearly $500 per tons recently," Widmar wrote. "And while many expected lower fertilizer prices, the magnitude of the decline, more than a 31% decrease, is more than many likely expected."
An estimated fertilizer expense for a 180-70-70 fertilizer application (anhydrous, DAP and potash) during the highest prices in 2011 to 2013 was around $160 per acre. By 2014 and 2015 prices had moved lower and this application would have cost nearly $140 per acre.
In the spring of 2016, the cost of this application dropped another $28 per acre and cost $112 per acre. Currently, the cost of this application is $96 per acre, nearly 40% lower than 2014 and 2015 levels, he wrote.
I was quoted yesterday that Nitrogen based was up last weekend and they probably will increase it again. Yea kick the Canadian farmer down when they want to.
Leading the way lower for the first time is anhydrous. The nitrogen fertilizer is 6% lower compared to a month earlier and has an average price of $472/ton.
The other fertilizer significantly lower is 10-34-0. The starter fertilizer is 5% less expensive from the first week of September and now has an average price of $454/ton.
The remaining six fertilizers were all lower compared to last month, but the move to the low side was fairly slight. DAP had an average price of $438/ton, MAP $451/ton, potash $312/ton, urea $315/ton, UAN28 $224/ton and UAN32 $263/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.34/lb.N, anhydrous $0.29/lb.N, UAN28 $0.40/lb.N and UAN32 $0.41/lb.N.
Declining retail fertilizer prices helped lower farmers' input costs in 2016 and now with the crops being harvested and fertilizer being applied for the 2017 growing season, many are wondering where fertilizer prices could be in the next growing season. In a post on the Agricultural Economic Insights website titled "Will Farmers Benefit from Lower Fertilizer Prices Again in 2017?" author David A. Widmar examines the possibility that even lower fertilizer prices could be seen in 2017.
The trends over the last few years show most retail fertilizer prices peaked in 2010 to 2012 and since mid-2013, prices have settled lower, he wrote.
"In fewer than two years of data, anhydrous ammonia prices went from $725 per ton in early 2015 to nearly $500 per tons recently," Widmar wrote. "And while many expected lower fertilizer prices, the magnitude of the decline, more than a 31% decrease, is more than many likely expected."
An estimated fertilizer expense for a 180-70-70 fertilizer application (anhydrous, DAP and potash) during the highest prices in 2011 to 2013 was around $160 per acre. By 2014 and 2015 prices had moved lower and this application would have cost nearly $140 per acre.
In the spring of 2016, the cost of this application dropped another $28 per acre and cost $112 per acre. Currently, the cost of this application is $96 per acre, nearly 40% lower than 2014 and 2015 levels, he wrote.
I was quoted yesterday that Nitrogen based was up last weekend and they probably will increase it again. Yea kick the Canadian farmer down when they want to.
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