Fertilizer Prices Turn Mildly Higher

Posted on 02/07/2020 1:18 PM

 

BE ADVISED: It does appear fertilizer markets are set to head higher. This falls in line with our seasonal expectations. We advise growers to get in touch with their preferred retailers to talk near-term price prospects and prepare to book accordingly. We are 50% filled on spring nitrogen and have yet to book P&K for spring applications. We believe the market is ripe for a price rally and if our Nutrient Composite Index firms again next week, we will consider it confirmation the downside is exhausted, and will advise aggressive N,P & K purchases for the upcoming field prep season.

  • Fertilizer prices were mostly higher with anhydrous ammonia and UAN28% drifting lower.
  • Our Nutrient Composite Index (NCI) firmed 0.89 points this week to 528.18.

Nitrogennitrogen indices chart

  • Anhydrous ammonia led declines in the nitrogen segment with Wisconsin falling $33.33 per short ton. Not other state, however posted a lower price. Indiana firmed $5.01 and Minnesota added $3.22.
  • UAN28% firmed slightly with North Dakota up $7.55 and Indiana $3.87 higher on the week. Minnesota softened $9.26 and South Dakota off $6.22.
  • Urea firmed mildly on the week with Indiana up $6.35 and Missouri $4.14 higher. Michigan led declines falling $4.34 and South Dakota softened 1.76.
  • UAN32% was just shy of $2 higher regionally with Indiana firming $19.40 and Michigan up $3.83. Illinois led declines softening $3.12 and Nebraska off 54 cents per short ton.

Phosphate

  • Phosphates firmed on the week with MAP leading gains.p and k indices chart
  • Michigan MAP firmed $11.81 with Indiana up $10.41. North Dakota posted the only MAP price decline falling $7.07.
  • DAP was slightly higher regionally led by Michigan which firmed $26.72 and Missouri up $1.92. South Dakota MAP softened $11.00 and Illinois fell $7.02.
  • According to MosaicCo., during the week ended February 7, wholesale DAP and MAP firmed at U.S. terminals.

Potash

  • Potash prices firmed very slightly on the week with Michigan up $4.35 and Indiana gaining $2.32. Meanwhile, South Dakota fell $6.91 as Minnesota softened $4.21.
  • Our indexed potash figure remains very closely tied to our Nutrient Composite Index (NCI), which hints at the upside potential baked-in to anhydrous and phosphates which have long been at a discount to our NCI.
  • According to MosaicCo., wholesale phosphates were sideways to lower at U.S. terminals during the report week.

Corn Futures

  • December 2020 corn futures closed Friday January 31 at $3.90 putting expected new-crop revenue (eNCR) at $642.40 per acre.
  • With our Nutrient Composite Index (NCI) at 528.18 this week, the eNCR/NCI spread narrowed 14.97 points and stands at -114.22.
Fertilizer
1/20/19
1/27/20
Change
Current Week
Fertilizer
Anhydrous
$510.98
$508.96
-$1.43
$507.53
Anhydrous
DAP
$435.04
$413.05
+33 cents
$413.38
DAP
MAP
$407.19
$401.03
+$2.37
$403.40
MAP
Potash
$359.07
$360.05
+9 cents
$360.14
Potash
UAN28
$239.54
$237.49
-33 cents
$237.16
UAN28
UAN32
$276.32
$271.74
+$1.94
$273.68
UAN32
Urea
$357.51
$358.58
+49 cents
$359.07
Urea
Composite
534.14
527.29
+0.89
528.18
Composite

nutrient composite index chart

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