Six Fertilizers Lead Prices Lower Again

OMAHA (DTN) — Retail fertilizer prices tracked by DTN for the fourth week of January 2024 were mostly lower.

For the fifth straight week, six of the eight major fertilizers were lower in price compared to last month; the remaining two fertilizers were slightly higher. DTN designates a significant move as anything 5% or more.

One difference this week is that none of the fertilizer prices tracked was up or down a significant amount.

Six fertilizers were down just slightly from the prior month. MAP had an average price of $809/ton, potash $509/ton, urea $527/ton, anhydrous $770/ton, UAN28 $335/ton and UAN32 $390/ton.

Two fertilizers, meanwhile, were just slightly higher in price compared to last month. DAP had an average price of $734/ton and 10-34-0 $610/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.57/lb.N, anhydrous $0.47/lb.N, UAN28 $0.60/lb.N and UAN32 $0.61/lb.N.

In this column, we normally compare fertilizer prices to one month ago and one year ago. I wondered what the data would show if we compared the latest week to six months ago, the fourth week of July 2023.

As one would expect, most of the retail fertilizer prices for the fourth week of January 2024 are lower than six months ago. But not all fertilizer prices are less expensive.

The fertilizer with the largest decline in this six-month time frame is 10-34-0. Starter fertilizer was $715/ton last summer and now it is $610/ton, a difference of $105/ton.

Potash was another fertilizer with a decent drop in price. Last summer the average price was $594/ton and last week the price was $509/ton, a drop of $85/ton.

DAP was at $795/ton last July and $734/ton last week, a drop of $61/ton. Urea was at $581/ton last summer and $527/ton last week, a decline of $54/ton.

Other declines in fertilizer prices include UAN32 ($442/ton six months ago and $390/ton last week) with a drop of $52/ton and UAN28 ($383/ton six months ago and $335/ton last week) with a decline of $48/ton.

Two fertilizers increased in price during this time. Anhydrous was $691/ton six months ago and $770/ton last week, a healthy rise of $79/ton. MAP was $791/ton last summer and $809/ton last week, a slight increase of $18/ton.

The market factors affecting fertilizer prices are numerous and varied, leading one fertilizer price to fall $100 per ton, while another was up nearly $80 per ton in the six-month time frame.

All fertilizers except one are now lower by double-digits compared to one year ago. MAP is 7% lower, DAP is 14% less expensive, 10-34-0 is 19% lower, urea is 26% less expensive, potash is 29% lower, UAN28 is 36% less expensive and both anhydrous and UAN32 are 38% lower compared to a year prior.

DTN gathers fertilizer price bids from agriculture retailers each week to compile the DTN Fertilizer Index. DTN first began reporting data in November 2008.

In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/agriculture/web/ag/markets/fuels-fertilizers#!/fertilizers.

USDA will invest $207 million in renewable energy and domestic fertilizer projects, according to a USDA press release. You can read about it here: https://www.dtnpf.com/agriculture/web/ag/crops/article/2024/01/24/anhydrous-leads-major-fertilizer.

Russ Quinn can be reached at Russ.Quinn@dtn.com.

Follow him on X, formerly known as Twitter, @RussQuinnDTN.