Weekly Fertilizer Bulletin | NH3 Crests $600

Posted on 01/08/2019 1:50 PM

 

  • Fertilizer prices were mixed but higher overall.
  • Our Nutrient Composite Index firmed 2.93 points to 606.18. This compares to our 5-year average of 599.01 for this week.

Nitrogennitrogen indices chart

  • Nitrogen prices were mostly higher with anhydrous ammonia once again leading gains.
  • UAN solutions were higher with 32% up 19 cents by the short ton and 28% adding $4.78 on the week.
  • Urea continued lower after falling last week, down a whole 25 cents this week.
  • We do not expect a pullback in nitrogen prices between now and spring. We advise growers get in touch with preferred retailers and get some nitrogen booked before prices move even higher.
  • A re-coupling with expected new-crop corn revenue, the trade spat with former leading urea exporter China and sanctions on ammonia supplies coming out of Iran are all combining to support higher fertilizer prices for spring.

Phosphate

  • Phosphate prices were mixed as MAP fell $5.21 by the short ton led by declines in Illinois and North Dakota.pandk indices chart
  • DAP gained $4.29 per short ton with Iowa and Ohio leading gains.
  • According to MosaicCo, wholesale phosphate prices were mixed but higher at New Orleans terminals in the week ended January 4.
  • Phosphates are priced in-line with expected new-crop revenue when considered on an indexed basis suggesting further price strength will be limited.

Potash

  • Potash gained nearly $2 in tis week's survey, led by gains in Iowa.
  • Wholesale potash prices dipp3ed at Corn Belt locations and at NOLA in the week ended Jan. 4, according to MosaicCo.
  • Potash sports a hefty discount to NH3 when considered on an indexed basis. Given the current nitrogen market fundamentals, it is more likely that potash will follow NH3 higher, rather than pulling anhydrous lower.

Corn Futures

  • December 2019 corn futures closed Friday January 4 at $4.04 putting expected new-crop revenue (eNCR) at $655.67 per acre -- up $12.11 per acre on the week.
  • With our Nutrient Composite Index (NCI) at 606.18 this week, the eNCR/NCI spread widened 9.18 points and now stands at -49.49.
Fertilizer
12/24/18
1/2/19
Change
Current Week
Fertilizer
Anhydrous
$573.60
$593.99
+$8.99
$602.99
Anhydrous
DAP
$524.18
$521.55
+$4.29
$525.84
DAP
MAP
$538.25
$526.29
-$5.21
$521.07
MAP
Potash
$372.33
$377.52
+$1.90
$379.42
Potash
UAN28
$276.39
$277.24
+$4.78
$282.02
UAN28
UAN32
$301.75
$313.66
+19 cents
$313.85
UAN32
Urea
$418.08
$397.98
-25 cents
$397.73
Urea
Composite
602.65
603.25
+2.93
606.19
Composite

nutrient composite index chart

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