Retail fertilizer prices tracked by DTN for the second week of June 2023 continued the trend of moving lower compared to a month ago. This trend has been in place since the beginning of 2023.
Six of the eight major fertilizers were less expensive compared to last month. Only two fertilizers were considerably less expensive. DTN designates a significant move as anything 5% or more.
Anhydrous was 13% lower compared to the prior month, and the nitrogen fertilizer had an average price of $781 per ton. UAN32 was 8% less expensive than last month with an average price of $476/ton.
Four other fertilizers were slightly lower compared to last month. DAP had an average price of $823/ton, potash $621/ton, 10-34-0 $737/ton and UAN28 $406/ton.
Just two fertilizers were slightly more expensive compared to a month ago. MAP had an average price of $823/ton, while urea was at $624/ton.
On a price per pound of nitrogen basis, the average urea price was $0.68/lb.N, anhydrous $0.48/lb.N, UAN28 $0.73/lb.N and UAN32 $0.74/lb.N.
In her most recent Cash Market Moves column, "Mississippi River Levels Falling Due to Heat and Little to No Rain," DTN Basis Analyst Mary Kennedy examined the issue of the Mississippi River seeing lower water levels. Last fall the river logged extremely low levels; so much so that some analysts thought most product movement would be affected.
Winter snows and spring rains helped to increase river levels, but with the recent dry weather across the Corn Belt, the barge industry is again keeping a wary eye on water levels.
As of June 19, the water level in St. Louis was 1.58 feet above zero gauge and is forecast to fall below that by the end of June. The water level in Memphis was 4.62 feet below zero gauge, while in New Orleans the level was at 3.19 feet and forecast to fall.
Kennedy reported there isn't much grain moving downstream as far as corn and soybeans given exports are currently flat. But products moving upstream could see some impact from lower water levels, she said.
"There are industrial products, fertilizer and other commodities that rely on the river to get to end users," Kennedy wrote. "If water levels continue to fall, barge freight will likely cost more, and transit could slow due to various safety protocols being implemented."
To be clear, current river conditions are in no way as close to the disaster we saw last fall. But severe drought conditions can quickly lower the Mississippi River's water level, Kennedy wrote.
To read the entire article, click here: https://www.dtnpf.com/….
All fertilizers are now lower by double digits compared to one year ago. 10-34-0 is 19% less expensive, DAP is 21% lower, MAP is 23% less expensive, potash is 29% lower, both urea and UAN32 are 35% less expensive, UAN28 is 36% lower and anhydrous is 49% lower compared to a year prior.
DTN gathers fertilizer price bids from agriculture retailers each week to compile the DTN Fertilizer Index. DTN first began reporting data in November 2008.
In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….
Retail fertilizer prices have declined significantly since the beginning of the year, but which ones have dropped the most? You can read it here: https://www.dtnpf.com/
Photo Credit: GettyImages-DarcyMaulsby
Categories: Iowa, Crops, Corn, Soybeans, Weather