Fertilizers Firm | Align Your Ducks

Posted on 04/02/2020 1:38 PM

 

  • Fertilizer prices were higher on the week led by gains in phosphates and urea.
  • Our Nutrient Composite Index (NCI) firmed 3.75 points to 536.10.

With preplant applications approaching and even underway in some southern areas, fertilizer prices rose this week. Indications are this week's rally in fertilizers, which was led by phosphates, is related to early-season demand, especially for phosphate. North American P producers announced months ago they would restart stalled production to replace a brisk refill after harvest by retailers. That suggests supplies are ample, but this week's rise hints at increasing demand.

On the nitrogen side, anhydrous ammonia is unchanged on the week. It is early for nitrogen applications, but several areas will be rolling as early as a week from now. Urea and 32% remain overpriced compared to NH3, but with the seasonal demand push right around the corner, nitrogen prices are not likely to soften much from here if at all.

We are currently 50% filled on spring/summer nitrogen and 100% filled on spring P&K. If you have not yet made arrangements for your spring/summer needs, take some time, get in touch with your preferred retailer and get your ducks in a row. Supplies do appear to be ample, but social distancing will evoke issues that we have not yet encountered. Time will help alleviate some of those issues, and those who do not plan ahead may suffer the consequences without the ability of visiting with your retailer in person. Get out ahead of potential supply problems in your local delivery system by making your plans known to your supplier before the seasonal demand push accelerates.

Fertilizer
3/16/20
3/21/20
Change
Current Week
Fertilizer
Anhydrous
$508.93
$509.08
Unchanged
$509.08
Anhydrous
DAP
$418.72
$419.04
+$8.60
$427.68
DAP
MAP
$407.38
$409.14
+$4.61
$413.75
MAP
Potash
$358.64
$359.07
+1 cent
$359.08
Potash
UAN28
$236.39
$236.76
+$1.53
$238.29
UAN28
UAN32
$274.39
$274.62
+$1.24
$275.86
UAN32
Urea
$361.58
$368.04
+$2.59
$370.62
Urea
Composite
530.25
532.35
+3.75
536.10
Composite

Corn Futures

  • December 2020 corn futures closed Friday March 27 at $3.64 putting expected new-crop revenue (eNCR) at $596.64 per acre.
  • With our Nutrient Composite Index (NCI) at 536.10 this week, the eNCR/NCI spread narrowed 1.99 points and stands at -60.54.nitrogen indices chart

Nitrogen

  • Nitrogen prices were mostly higher on the week with the exception of anhydrous ammonia which is unchanged.
  • Nebraska NH3 gained $3.16 and Indiana firmed $2.45. Minnesota NH3 softened $3.16 as Illinois dropped $2.45.
  • UAN32% firmed $1.24 on the week led by Wisconsin which firmed $10.85 and Michigan gained $3.13. Illinois softened $4.17 as Nebraska shucked 13 cents per short ton.
  • UAN28% was higher as well with Wisconsin up $12.65 and Ohio $6.70 higher. Illinois 28% softened $2.66 and Minnesota fell $1.21.
  • Urea led gains in the nitrogen segment, firming $2.59 regionally. Ohio gained $17.34 and Indiana firmed $4.14. Declines were mild led by South Dakota which softened 32 cents as Michigan fell 25 cents per short ton.p and k indices chart

Phosphate

  • Phosphates led gains across our survey this week.
  • DAP firmed $8.60 with Ohio up $45.43 and Indiana gaining $19.78. South Dakota softened 11 bucks as Minnesota fell $1.79. All other states were higher or unchanged on the week.
  • MAP firmed less dramatically with Ohio MAP up $24.90 and Wisconsin up $21.51. Meanwhile, Indiana softened $4.35 and South Dakota dropped 34 cents per short ton.
  • According to MosaicCo., in the week ended March 27, wholesale DAP and MAP fell at most U.S. terminals. But Wholesale DAP in Central Florida firmed slightly.

Potash

  • Potash was up a penny regionally this week.
  • Wisconsin potash firmed $6.84 and Michigan up $4.81. Minnesota fell $6.07 and Illinois softened $5.01.
  • According to MosaicCo., wholesale potash prices fell mildly at U.S. terminals during the report week.

nutrient composite index chart


 

 

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