AMIS: Fertilizer Prices Down More Than 40% Since Last Spring; “Significant Price Declines” Continue, DTN

In its February Market Monitor report, the Agricultural Market Information System (AMIS) indicated that, “Fertilizer prices have declined by more than 40 percent since hitting record (nominal) highs last spring, especially due to recent drops in natural gas prices and fertilizer plants reopening in Europe.

“Though prices remain almost twice the level of two years ago, this development is welcome news for producers making input purchases this spring and should improve profitability margins for many crops. With the price decline most prominent for nitrogenous fertilizers, this could make nitrogen-intensive crops such as wheat and maize more attractive planting choices than they were last spring.

“Lower prices could also encourage higher application rates, particularly in developing countries where fertilizer use is relatively low and where recent high prices have further reduced application rates.”

Also this week, DTN writer Russ Quinn reported that, “Retail fertilizer prices continue to see significant price declines, according to prices tracked by DTN for the fourth week of January 2023. This trend has been in place since the beginning of the year.”

Quinn explained that, “Leading the way lower is UAN28. The nitrogen fertilizer was 9% lower in price compared to last month and had an average price of $523/ton.

“Potash, anhydrous and UAN32 were 7% less expensive looking back to last month. Potash had an average price of $714/ton, anhydrous $1,237/ton and UAN32 $630/ton.

“Urea was 6% lower in price compared to the prior month. It had an average price of $708/ton.

“Both DAP and MAP were slightly lower looking back to last month. DAP had an average price of $855/ton while MAP was $865/ton.”

The DTN article added that, “All fertilizers are now lower compared to one year ago. DAP is 3% lower, both MAP and 10-34-0 are 8% less expensive, UAN32 is 10% lower, potash is 12% less expensive, UAN28 is 13% lower, anhydrous 17% less expensive and urea is 22% lower compared to a year prior.”