Fertilizer Prices Reflect Fading Seasonal Demand

Posted on 06/12/2020 11:51 AM

 

Fertilizer prices were mixed amid another week of very mild price action.

It was another quiet week in fertilizer prices, and we see no urgency to book any fall product at this time. We are watching wholesale markets including urea and especially phosphates. Both are rumored to be pointed higher, and phosphates did take a step up in the most recent report week. Sidedress activity is underway and if there's to be a seasonal swoon in fertilizer prices, we should begin to see it soon.

If you have not seen our updated advice on farm diesel (click to view the article), we recommended subscribers book 100% of summer needs and at least 50% of expected fall needs at current prices.

  • Our Nutrient Composite Index (NCI) softened 0.23 points to 539.51.
Fertilizer
5/25/20
6/1/20
Change
Current Week
Fertilizer
Anhydrous
$505.26
$500.85
+23 cents
$501.08
Anhydrous
DAP
$424.48
$424.12
+88 cents
$425.00
DAP
MAP
$420.76
$420.46
-42 cents
$420.04
MAP
Potash
$356.85
$357.48
+57 cents
$358.06
Potash
UAN28
$244.83
$244.43
-39 cents
$244.04
UAN28
UAN32
$276.14
$273.90
-28 cents
$273.62
UAN32
Urea
$387.39
$385.49
-$1.20
$384.29
Urea
Composite
541.57
539.74
-0.23
539.51
Composite

Corn Futures

  • December 2020 corn futures closed Friday June 5 at $3.45 putting expected new-crop revenue (eNCR) at $563.20 per acre, up $12.32 on the week.
  • With our Nutrient Composite Index (NCI) at 539.51 this week, the eNCR/NCI spread widened 11.30 points and stands at -23.69.

Nitrogennitrogen indices chart

  • Nitrogen prices were mixed but mostly lower on the week.
  • Urea led declines with South Dakota off $13.00 and Minnesota down $4.06. Only Michigan posted a higher year price this week, up $5.04 per short ton. According to MosaicCo., wholesale urea values firmed slightly at the NOLA terminal in the week ended June 5.
  • UAN28% was led lower by a $4.47 decline in South Dakota as North Dakota softened $2.64. Once again, Michigan was our sole gainer adding $4.53.
  • UAN32% softened with Kansas off $2.14 and Iowa down 93 cents per short ton. All other states were unchanged on the week.
  • Anhydrous ammonia firmed 23 cents per short ton on the week with South Dakota up $2.38, North Dakota 75 cents higher and Michigan firming 70 cents per short ton. Offsetting, Iowa softened 95 cents as Illinois fell 12 cents. All other states were unchanged.

PhosphateP and K indices chart

  • Phosphates were mixed on the week with DAP up less than a dollar.
  • DAP was led higher by Michigan, which firmed $9.42 as Minnesota DAP added 52 cents per short ton. Illinois softened 27 cents, and all other states were unchanged..
  • MAP fell slightly with Michigan off $7.28 and Kansas down 42 cents on the week. Minnesota gained $2.41 as Iowa firmed 23 cents.
  • According to MosaicCo., wholesale DAP and MAP firmed moderately in the week ended June 5 at U.S. terminals.

Potash

  • Potash prices firmed slightly on the week.
  • South Dakota firmed $9.19 and Minnesota added $3.12. Meanwhile Michigan softened $2.74 and Kansas fell $2.59.
  • According to MosaicCo., during the report week, wholesale potash ran sideways at NOLA and softened slightly in the Corn Belt.
  • Our indexed potash figure remains over-priced compared to anhydrous but holds a moderate discount to our Nutrient Composite Index.

 


 

 

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