Weekly Fertilizer Bulletin | NH3 and Urea Agree

• Fertilizers were moderately higher with DAP and potash leading gains.
• Our Nutrient Composite Index firmed 3.04 points to 559.99. This compares to our 5-year average of 654.33.

Nitrogen

• Well this is interesting... Urea and anhydrous ammonia each firmed on the week and each by the same amount by the short ton.
• This week's price action suggests urea refuses to cede control over the nitrogen segment to NH3.
• UAN solutions were each higher with 32% up $2.16 to lead overall gains in the nitrogen segment.
• UAN does remain priced around the midpoint of urea and NH3 so the battle for dominance will continue into next week.
• Industry watchers are maintaining their previous forecast for lower prices by harvest, but with corn prices showing hints of firming, the downside for nitrogen may be limited.

Phosphate

• Phosphate prices were mixed with DAP sharply higher as MAP posted a moderate decline.
• According to MosaicCo, wholesale phosphate prices were sideways to mostly higher at U.S. terminals in the week ended August 17.
• Both forms of phosphate in our survey are priced at a wide premium to anhydrous ammonia when considered on an indexed basis.
• From the production side, wholesale feedstock sulphur prices are unchanged on the week and continue to support overpriced osteopaths products.

Potash

• Potash firmed more than $5 per short ton on the week.
• North American production cutbacks appear to be having an influence on U.S. retail prices.
• Meanwhile MosaicCo reported higher wholesale potash prices at U.S. terminals on the week.

Corn Futures

• December 2019 corn futures closed Friday August 17 at $4.04 putting expected new-crop revenue (eNCR) at $655.67 per acre -- up $6.92 per acre on the week.
• With our Nutrient Composite Index (NCI) at 559.99 this week, the eNCR/NCI spread widened 3.96 points and now stands at -95.76.