Retail fertilizer prices continued to increase the third week of April 2021, albeit at a slower pace, according to sellers surveyed by DTN.
While all eight of the major fertilizers were higher compared to a month earlier, no fertilizers were significantly higher, which DTN designates as 5% or more. Increases fell between 1% and 4%.
UAN28 and UAN32 increased the most, about 4% each. UAN28 cost an average of $348 per ton, while UAN32 was $391/ton.
Anhydrous increased 3% to $707/ton.
With 2% increases, urea had an average price of $510/ton, while 10-34-0 was $612/ton.
DAP had an average price of $627/ton, MAP $703/ton and potash $432/ton, an increase of 1% over last month.
On a price per pound of nitrogen basis, the average urea price was at $0.55/lb.N, anhydrous $0.43/lb.N, UAN28 $0.62/lb.N and UAN32 $0.61/lb.N.
In a recent edition of the University of Illinois Extension farmdoc Daily e-newsletter, ag economists from the University of Illinois and Ohio State University authored an article titled “Fertilizer Price Increases for 2021 Production.”
The article points out retail fertilizer prices have increased dramatically since the fall of 2020. This, in turn, has led to increased fertilizer costs in both corn and soybean production budgets.
Using retail fertilizer prices from the USDA Illinois Production Cost report, the authors reported anhydrous ammonia prices have increased by $259/ton, or 60%, from Sept. 10, 2020, to April 8, 2021. DAP had an increase during the same period of $224/ton, or 54%, and potash was up $103/ton, or 31%.
Because of these higher retail fertilizer prices, corn and soybean production costs have increased.
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Fertilizer costs for corn production on Sept. 10, 2020, were $93/acre. An estimate on April 8 showed the cost was now at $140/acre, a $47/acre increase.
Higher fertilizer costs were also present in soybean production. The estimated fertilizer cost in September 2020 was at $39/acre, and the cost in April 2021 had risen to $56/ton, an increase of $17/acre.
“Overall, this will increase the profitability of soybeans relative to corn,” the authors wrote. “Soybeans have been projected more profitable than corn, so the additional fertilizer costs may not influence acreage decisions.”
To read the entire article, click here.
With retail fertilizer prices moving higher over recent months, all fertilizers are now higher in price from a year ago.
Potash is now 17% more expensive, 10-34-0 is 31% higher, urea is 32% more expensive, UAN32 40% higher, anhydrous is 44% more expensive, UAN28 is 47% higher, DAP is 53% more expensive and MAP 62% is higher compared to last year.
DTN collects roughly 1,700 retail fertilizer bids from 310 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.
DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.
Retail fertilizer charts dating back to 2010 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.
|Apr 20-24 2020||410||433||370||385|
|May 18-22 2020||409||434||367||387|
|Jun 15-19 2020||405||429||363||360|
|Jul 13-17 2020||406||428||361||359|
|Aug 10-14 2020||426||434||353||355|
|Sep 7-Sep 11, 2020||434||445||345||360|
|Oct 5-9 2020||441||466||335||361|
|Nov 2-6 2020||447||479||331||358|
|Nov 30-Dec 4 2020||455||499||340||359|
|Dec 28-Jan 1 2021||475||537||366||367|
|Jan 25-29 2021||500||580||379||405|
|Feb 22-26 2021||605||661||408||464|
|Mar 22-26 2021||616||696||428||499|
|Apr 19-23 2021||627||703||432||510|
|Apr 20-24 2020||468||492||236||279|
|May 18-22 2020||469||490||237||280|
|Jun 15-19 2020||468||464||233||273|
|Jul 13-17 2020||468||460||225||263|
|Aug 10-14 2020||465||447||221||259|
|Sep 7-Sep 11, 2020||459||434||216||253|
|Oct 5-9 2020||457||424||209||250|
|Nov 2-6 2020||455||423||208||248|
|Nov 30-Dec 4 2020||459||427||208||249|
|Dec 28-Jan 1 2021||464||470||209||250|
|Jan 25-29 2021||489||489||220||258|
|Feb 22-26 2021||532||544||250||296|
|Mar 22-26 2021||599||684||335||376|
|Apr 19-23 2021||612||707||348||391|
Russ Quinn can be reached at email@example.com
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