©Debra L Ferguson
Retail fertilizer prices continued to be generally higher in the first full week of February 2022, according to vendors surveyed by DTN. All major fertilizers except one were higher than last month.
Seven of the top eight fertilizers were slightly higher, although none increased significantly. DTN denotes significant movement as anything of 5% or more.
DAP had an average price of $876/ton from last month, MAP $935/ton, Potash $815/ton, 10-34-0 $827/ton, Anhydrous $1,487/ton (all-time high), UAN28 $600/ton and UAN32 $699/ton (all time high).
In recent weeks, UAN28 was at or above $600/tonne. This is the first time UAN28 has exceeded $600/tonne in our dataset.
A fertilizer was cheaper than the previous month. Urea was slightly lower with an average price of $905/tonne.
On a price per pound nitrogen basis, the average price of urea was $0.98/lb.N, anhydrous $0.91/lb.N, UAN28 $1.07/lb.N and UAN32 $1.09/lb.N.
Perspective is an interesting thing and sometimes we gain a new perspective by walking away from something for a while. As you may or may not have noticed, I haven’t written this column for the past few weeks.
Now that I’m back to writing the column, I noticed immediately that the percentage increases in fertilizer prices for the top eight fertilizers are much lower than three weeks ago. I wondered why that was the case.
Retail fertilizer prices aren’t lower, so how could the percentages change so much in just a few weeks?
During the last week of January, fertilizer prices increased by 69% to 202% compared to the previous week. This week, the range was “only” 46% to 184%.
I went back and watched to see what happened between the third week of January 2021 and the first week of February 2021. As you may recall, fertilizer prices were steadily rising, but there has been a sharp increase in prices over the past two weeks. January and the first week of February.
The third week of January 2021, DAP was $493/ton, MAP $563/ton, Potash $379, Urea $387/ton, 10-34-0 $481/ton, Anhydrous $482/tonne, UAN28 $215/tonne and UAN32 $251/tonne.
Two weeks later, prices had really taken off higher. DAP was $554/tonne, DAP $601/tonne, potash $389, urea $429/tonne, 10-34-0 $502/tonne, anhydrous $507/tonne, UAN28 $239/ton and UAN32 $272/ton.
Thus, the full year price change percentages are much lower for the first week of February compared to the third week of January 2021 due to the large price increase that occurred last year at the end of January.
Translation: Fertilizer prices have now been high for a full calendar year, so the higher percentages aren’t as high as they used to be.
I thought that was rather interesting. Of course, I’ve been writing about fertilizer prices for 12 years now… what do I know that’s interesting?
The price of most fertilizers continues to be significantly higher than a year ago.
MAP is now 46% more expensive, DAP is 49% more expensive, 10-34-0 is 61% more expensive, urea is 100% more expensive, potash is 105% more expensive, UAN32 is 145% higher, UAN28 is 147% more expensive and anhydrous is 184% higher than last year.
DTN surveys over 300 retailers, gathering approximately 1,700 fertilizer price quotes, to compile the DTN Fertilizer Index each week. In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index here, which includes state averages.
The recent DTN Global Fertilizer Outlook series drew attention to what the global expectation could be in 2022. This series looked at global nutrient supply and demand as well as the direction that fertilizer prices might take in the new year.
Read the nitrogen outlook here.
Read the outlook on phosphorus here.
Read the potash outlook here.
|February 8-12, 2021||588||642||398||453|
|March 8-12, 2021||615||690||423||483|
|April 5-9, 2021||618||699||431||504|
|May 3-7, 2021||634||705||436||514|
|May 31-June 4, 2021||652||712||443||524|
|June 28-July 2, 2021||677||721||476||542|
|July 26-30, 2021||695||753||549||554|
|August 23-27, 2021||697||756||569||557|
|September 20-24, 2021||709||786||625||585|
|October 18-22, 2021||810||863||716||735|
|November 15-19, 2021||825||911||769||859|
|December 13-17, 2021||858||935||796||901|
|January 10-14, 2022||863||932||807||913|
|February 7-11, 2022||876||935||815||905|
|February 8-12, 2021||512||524||243||285|
|March 8-12, 2021||581||625||306||344|
|April 5-9, 2021||605||692||341||378|
|May 3-7, 2021||618||712||358||398|
|May 31-June 4, 2021||619||719||363||412|
|June 28-July 2, 2021||625||730||366||421|
|July 26-30, 2021||631||737||365||419|
|August 23-27, 2021||632||748||370||420|
|September 20-24, 2021||633||772||383||436|
|October 18-22, 2021||659||940||451||492|
|November 15-19, 2021||739||1220||571||651|
|December 13-17, 2021||790||1420||579||663|
|January 10-14, 2022||796||1430||584||679|
|February 7-11, 2022||827||1487||600||699|
Russ Quinn can be contacted at email@example.com
Follow him on Twitter @RussQuinnDTN