Phosphates Strengthen during P&K Offseason

Posted on 07/01/2020 8:34 PM

 

Fertilizer prices were mixed with nitrogen and potash softer as phosphates firmed on the week.

Our Nutrient Composite Index (NCI) softened 0.90 points to 531.29.

While the nitrogen complex is softening, phosphates headed higher this week. While we are not prepared to issue official advice, it might be prudent to start talking with your preferred retailer about phosphate applications this fall. Prices have certainly come down, and USDA reported this week principal crop acres in the U.S. are down from March intentions. Supplies seem to be ample, but if export activity slows again, we may find ourselves with a limited supply on hand in U.S. storehouses.

If you are considering fall phosphate applications, we would advise you communicate with your preferred retailer and be prepared to lock in product well ahead of harvest.

 

Fertilizer
6/15/20
6/22/20
Change
Current Week
Fertilizer
Anhydrous
$495.71
$493.21
-$3.75
$489.46
Anhydrous
DAP
$424.34
$422.39
+$4.27
$426.66
DAP
MAP
$418.78
$416.24
+$6.05
$422.29
MAP
Potash
$357.22
$356.01
-$2.63
$353.39
Potash
UAN28
$242.71
$240.13
-94 cents
$239.19
UAN28
UAN32
$272.05
$270.79
-$5.89
$264.91
UAN32
Urea
$378.08
$374.95
-34 cents
$374.61
Urea
Composite
535.96
532.69
-0.90
531.29
Composite

Corn Futures

  • December 2020 corn futures closed Friday June 26 at $3.25 putting expected new-crop revenue (eNCR) at $528.00 per acre, off $35.20 on the week.
  • With our Nutrient Composite Index (NCI) at 531.29 this week, the eNCR/NCI spread widened 33.80 points and stands at +3.29.

NitrogenNitrogen indices chart

  • Nitrogen prices were, once again lower across the board this week.
  • UAN32% led declines in the nitrogen segment with Missouri cascading $35.40 lower and Iowa off $10.90. Minnesota gained $4.46 as Kansas firmed 13 cents per short ton. All other states were lower or unchanged.
  • Anhydrous ammonia fell under the weight of a $36.60 decline in Iowa as South Dakota fell $14.68. Offsetting, Minnesota firmed sharply, up $17.60 as Michigan added $15.68.
  • UAN28% was led lower by Iowa which dropped $27.92 as Illinois softened $2.55. Ohio added $16.79 and Michigan firmed $3.16.
  • Urea fell slightly with Iowa down $25.90 and Ohio off $6.02. Missouri shot $19.34 higher and Illinois gained $11.63. during the most recent report week, MosaicCo., wholesale urea firmed slightly at NOLA.

Phosphate

  • Phosphates were standout gainers this week.
  • MAP led gains with Illinois up $51.69 and Michigan $11.98 higher. Iowa slid $12.60 as Minnesota softened $2.19.
  • DAP was higher as well with Ohio firming $33.13 and Wisconsin up $6.92. Indiana fell $7.36 and Missouri softened $2.38.P and K indices chart
  • According to MosaicCo., in the week ended June 26, wholesale phosphate values were mixed but mostly lower at U.S. terminals.
  • when considered on an indexed basis, retail MAP is priced in-line with our indexed potash figure, but both DAP and MAP are priced at a premium to anhydrous ammonia.

Potash

  • Potash was moderately lower on the week.
  • Iowa fell $14.20 and Minnesota fell $7.56. Missouri gained $7.51 and Wisconsin firmed $2.36.
  • According to MosaicCo., during the report week, wholesale potash softened at NOLA and Corn Belt terminals.
  • On an indexed basis, potash remains overpriced when compared to retail anhydrous ammonia, but is slightly softer than out Nutrient Composite Index.

 


Nutriet Composite Index

 

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