DTN Retail Fertilizer Trends

Potash Price Jumps 10%, Urea Up 5% as Fertilizer Prices Keep Climbing

Key words of the passage: fertilizer; price; nitrogen; manufacture; produce

OMAHA (DTN) --- Two fertilizers saw significant price increases in the third week of September 2021, according to retail prices tracked by DTN.A number of other fertilizer prices moved higher too, although they didn't meet the 5% threshold, which DTN considers significant. Potash was 10% higher compared to last month. The fertilizer had an average price of $625/ton. Urea was 5% more expensive than the prior year. The nitrogen fertilizer had average price of $585/ton. The average retail price for MAP was 4% more expensive than last month at $786/ton. At 3% higher, anhydrous was $772/ton, UAN28 $383/ton, UAN32 $436/ton.

DAP prices increased 2% to an average price of $709/ton, while 10-34-0 was flat at $633/ton. On a price per pound of nitrogen basis, the average urea price was at $0.64/lb.N, anhydrous $0.47/lb. N, UAN28 $0.68/lb.N and UAN32 $0.68/lb.N.Higher natural gas prices in Europe have altered the profitability of the fertilizer business. Dow Jones reported last week CF Industries said it would evaluate whether an impairment charge with respect to its business in the United Kingdom (U.K.) may be required. An impairment charge reflects when an asset's value can no longer be justified by reference to future cash flows. The fertilizer giant announced on Sept. 15 it was halting operations at both its Billingham and Ince, U.K., manufacturing complexes due to high natural gas prices. A CF Industries press release from Sept. 21 announced the company restarted the ammonia plant at its Billingham complex.

Dow Jones reported CF reached an interim agreement with the U.K. government to cover the costs to restart the ammonia plant and produce carbon dioxide for customers in the UK. Operations remain shut down at the Ince manufacturing complex. CF reported in June its investment in the U.K. business was about $850 million and the U.K. operations accounted for about 2% of its consolidated gross margin for the year ended Dec. 31. Retail fertilizer prices compared to a year ago show all fertilizers have increased significantly.

10-34-0 is now 39% more expensive, urea is 62% higher, DAP is 63% more expensive, UAN32 is 72% higher, MAP is 74% more expensive, UAN28 is 78% higher, anhydrous 82% is more expensive and potash is 85% higher compared to last year. DTN surveys more than 300 retailers, gathering roughly 1,700 fertilizer price bids, to compile the DTN Fertilizer Index each week. In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages. Two major fertilizer producers announced shutdowns at European fertilizer manufacturing facilities in recent weeks due to high natural gas prices.

Source: Progressive FARMER DTN.COM