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DTN: Retail Fertilizer Price Trends, “Considerably Lower,” While Mexico Hopes to Reduce Corn Imports

DTN writer Russ Quinn reported yesterday that, “Most average retail fertilizer prices were lower the third week of January 2023, according to sellers surveyed by DTN.

Prices have moved considerably lower in recent weeks.

“Seven of the eight major fertilizers are lower in price compared to last month. Of these seven, the prices of six fertilizers were significantly lower, which DTN designates as a change of 5% or more.

Both potash and anhydrous were down 9% compared to last month. Potash had an average price of $721 per ton, while anhydrous had an average price of $1,238/ton.”

“DTN Retail Fertilizer Trends,” by Russ Quinn. DTN- Progressive Farmer (January 25, 2023).

Quinn explained that, “Prices had been trending lower for months, but they’ve dropped considerably in recent weeks.

“But by how much?

Looking back in DTN’s fertilizer data, prices for all eight major fertilizers are essentially at the same level they were in the fall of 2021 — right before the beginning of the run-up in prices, which lasted for a full year and a half.”

Iowa Production Cost Summary. USDA- Agricultural Marketing Service (January 24, 2023).

The DTN article stated that, “So, finally, some good news for producers in the retail fertilizer markets, as these are the lowest prices we have seen in roughly 15 months.

Illinois Production Cost Report. USDA- Agricultural Marketing Service (January 12, 2023).

“This is especially true for those farmers who are still in the market for their fertilizer needs for the 2023 growing season.”

“Fertilizer: The index for November, at 131.7, increased 0.5 percent from October and 20 percent from November a year ago.” (Agricultural Prices.” USDA- National Agricultural Statistics Service (December 30, 2022)).

Elsewhere, Reuters News reported yesterday that,

Mexico will not be able to completely replace all the corn it imports by 2024, Deputy Agriculture Minister Victor Suarez said on Wednesday, but it hopes to reduce its purchases between 30% and 40%.

“Latin America’s second-largest economy is already self-sufficient in production of white corn, but is highly dependent on imports of yellow corn, which it largely purchases for use as livestock feed.

“Suarez said Mexico is progressing ‘significantly’ in its bid to substitute grain imports, which come almost entirely from the United States.”

Williams, Angelica, Claire Hutchins, Steven Zahniser, and Jayson Beckman, Feed Outlook: December 2022, FDS-22l, U.S. Department of Agriculture, Economic Research Service, December 13, 2022.

The Reuters article noted that, “Suarez said Mexico’s next government also would have to deal with the issue and that it will need to ‘continue the strategy of saving small growers and food self-sufficiency.’

“Mexican President Andres Manuel Lopez Obrador’s term is set to end in October 2024.”

Keith Good Photo

Keith Good is the Farm Policy News editor for the farmdoc project. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.

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