Fertilizer Prices Rise, But Pace Slows

DTN writer Russ Quinn reported on Wednesday that, “Retail fertilizer prices continue to rise but at smaller percentages, according to prices for the last week of December 2021.

“Only two fertilizers were up a considerable amount. DTN designates a substantial move as anything 5% or more.

Leading the way higher was anhydrous, up 9% from a month prior. The nitrogen fertilizer’s average price was $1,428/ton, which continues to be the all-time high in the DTN data set.

Mr. Quinn noted that, “10-34-0 was 5% more expensive compared to last month. The starter fertilizer’s average price was at $795/ton.”

The DTN article added that, “The remaining six fertilizers had just slight price increases compared to the prior month. DAP had an average price of $864/ton, MAP $931/ton, potash $809/ton, urea $911/ton (all-time high), UAN28 $583/ton (all-time high) and UAN32 $679/ton (all-time high).

“On a price per pound of nitrogen basis, the average urea price was at $0.99/lb.N, anhydrous $0.87/lb.N, UAN28 $1.04/lb.N and UAN32 $1.06/lb.N.”

Meanwhile, Financial Times writer Judith Evans reported earlier this week that, “UK farmers are preparing for a fertiliser crunch in spring after prices almost tripled and supplies were cut, with the reduced use of crop nutrients expected to affect the productivity of livestock, dairy, vegetable and some arable farmers.

“Surging natural gas prices this year led to skyrocketing costs for ammonium nitrate fertiliser, the main product used to boost crop growth, and to the temporary closure of UK manufacturing plants.”

The FT article pointed out that, “Matt Culley, crops board chair at the National Farmers’ Union, said many farmers had been reluctant to order fertiliser at high prices, leading to expectations of supply problems as the 2022 growing season begins.”