After one week of mostly higher levels, retail fertilizer prices are again mostly lower, according to retail fertilizer prices tracked by DTN for the last week of May 2023.
Six of the eight major fertilizers are lower in price compared to last month. Only two fertilizers were substantially less expensive. DTN designates a significant move as anything 5% or more.
Anhydrous was 15% lower compared to the prior month and the nitrogen fertilizer had an average price was $791/ton. Urea was 6% lower looking back to last month with an average price of $622/ton.
Four other fertilizers were slightly lower compared to last month. DAP had an average price of $824/ton, potash $620/ton, 10-34-0 $739/ton, and UAN28 $413/ton.
Two fertilizers were slightly more expensive compared to a month ago. MAP had an average price of $832/ton and urea $622/ton.
On a price per pound of nitrogen basis, the average urea price was $0.68/lb.N, anhydrous $0.48/lb.N, UAN28 $0.74/lb.N and UAN32 $0.75/lb.N.
Last week, the Purdue University/CME Ag Economy Barometer fell to its weakest reading since July 2022. The barometer fell 19 points to a reading of 104 in the month of May, this was down from 123 in the April report (Purdue University-CME Group Ag Economy Barometer).
Weakness in crop prices has helped to push the index lower, according to the report. This month's survey was conducted from May 15-19, 2023.
When asked the question, "Looking ahead to next year, what are your biggest concerns for your farming operation?", you can see a dramatic jump from April to May with lower crop and/or livestock prices behind the answer. In April, just 17% of respondents had this response while in May it increased to 26%.
Not surprisingly, concerns about higher input prices have eased in recent months with retail fertilizer prices steadily declining.
In August 2022, over 50% of respondents said this was their biggest concern. By January 2023, the number fell to under 40%, and by the May report it was just 34%.
All fertilizers are now lower by double digits compared to one year ago. 10-34-0 is 18% less expensive, DAP is 22% lower, MAP is 23% less expensive, potash is 30%, both UAN28 and UAN32 are 35% lower, urea is 37% less expensive and anhydrous is 48% lower compared to a year prior.
Source: iowacorn.org
Photo Credit: GettyImages-DarcyMaulsby
Categories: Iowa, Business, Crops, Livestock