Fertilizer Bulletin | Fertilizers Soften as Shortages Arise

Posted on 04/16/2019 12:52 PM

 

  • Fertilizer prices were mostly lower for the second consecutive week.
  • Our Nutrient Composite Index softened 2.65 points to 625.58.

BE ADVISED: Reports of shortages of anhydrous ammonia have surfaced quickly as transport has been hindered by difficulties on the rivers and on the rails. Keep the lines of communication open with your preferred retailer in regards to your local supplies, and as Farm Journal Agronomist Ken Ferrie advises, "keep a plan "B" in mind, and while you're at it, consider crafting plans "C" and "D", just in case.

It might also be wise to think ahead to sidedress nitrogen applications. If anhydrous has run short in your area, expect post-emerge demand for UAN to be very, very high. Those who already have NH3 bars available for sidedress will be glad they have them this year.

NitrogenNitrogen indices chart

  • Nitrogen prices were lower across the board this week with NH3 leading declines.
  • Urea was lower led by Michigan and Missouri.
  • UAN28% fell 61 cents per short ton under the weight of lower prices in Michigan and Kansas.
  • UAN32% softened as well with Indiana and Kansas under pressure.

Phosphate

  • Phosphates were mixed on the week with DAP higher on support from a corrective upside move in South Dakota.
  • MAP softened on what I would consider a corrective downside move in Indiana and Ohio.
  • According to MosaicCo, wholesale phosphate prices were sideways to lower at all domestic and international reporting locations in the week ended April 12.
  • Late last week, it was reported that MosaicCo. would suspend operations at two Brazilian phosphate p and k indices chartmines. This is not likely to impact U.S. phosphate product pricing, but MosaicCo. did say they will be diverting tonnages from other phosphate terminals, including that at Tampa, Florida. Read the Reuters article here.

Potash

  • Potash prices firmed 50 cents per short ton on the week with Nebraska and Iowa leading gains.
  • Potash remains at a discount to anhydrous ammonia, meaning upside risk continues to loom for vitamin K.
  • Wholesale potash prices were also sideways to lower at domestic and world terminals during the report week, according to MosiacCo.

Corn Futures

  • December 2019 corn futures closed Friday April 12 at $3.89 putting expected new-crop revenue (eNCR) at $629.72 per acre -- lower $1.73 per acre on the week.
  • With our Nutrient Composite Index (NCI) at 625.58 this week, the eNCR/NCI spread widened 0.92 points and now stands at -4.14.
Fertilizer
4/1/19
4/8/19
Change
Current Week
Fertilizer
Anhydrous
$625.31
$621.61
-$1.76
$619.85
Anhydrous
DAP
$518.38
$517.51
+9 cents
$517.60
DAP
MAP
$542.53
$542.30
-$10.53
$531.77
MAP
Potash
$387.34
$388.53
+50 cents
$389.03
Potash
UAN28
$289.13
$289.09
-61 cents
$288.47
UAN28
UAN32
$311.53
$313.49
-50 cents
$312.99
UAN32
Urea
$403.17
$411.89
-$1.47
$410.43
Urea
Composite
630.14
628.23
-2.65
625.58
Composite

Nutrient Composite Index chart

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