It’s a new year, but the same story of fertilizer prices moving higher.
Average retail fertilizer prices continued to rise the first week of January 2022. However, the percentages by which prices climbed were much lower than they have been in recent months.
Only one fertilizer was up a substantial amount. DTN designates a sizeable move as anything 5% or more.
Leading the way higher was 10-34-0, which was up 5% from a month prior. The starter fertilizer’s average price was $795 per ton.
The remaining seven fertilizers had just slight price increases compared to the prior month. DAP had an average price of $863/ton, MAP $931/ton, potash $807/ton, urea $913/ton (all-time high), anhydrous $1,430/ton (all-time high), UAN28 $584/ton (all-time high) and UAN32 $679/ton (all-time high).
On a price per pound of nitrogen basis, the average urea price was at $0.99/lb.N, anhydrous $0.87/lb.N, UAN28 $1.04/lb.N and UAN32 $1.06/lb.N.
In a post titled “Fertilizer Output in China Impacted by Air Pollution Curbs” from the Farm Policy News website from the University of Illinois Extension (here) author Keith Good reports China’s urea plants are getting caught up in Beijing’s drive to ensure blue skies for the upcoming Winter Olympics. This plan includes ordering factory shutdowns to curb air pollution.
More urea factories could be asked to suspend or cut output to limit air pollution before the start of the games. This move comes on the heels of the nation curbing fertilizer exports since late last year to help protect domestic supplies.
Good also reported Yara announced earlier this week they will wind down purchases of potash from Belarus by April 1 as international sanctions made it impossible to continue trade.
“Yara estimates that it buys 10%-15% of the annual output of state-owned Belaruskali, one of the world’s largest producers of potash,” Good wrote.
Global potash prices could increase after the U.S. imposed sanctions on the Belarus Potash Company (BPC). Farmers and consumers already face rocketing costs and a global economy navigating rising food inflation, he added.
See more on this situation and other global fertilizer news in the monthly DTN Fertilizer Outlook here.
Retail fertilizer prices compared to a year ago show all fertilizers have increased significantly, with several having well over 100% price increases.
10-34-0 is now 71% more expensive, MAP is 72% higher, DAP is 79% more expensive, potash is 119% higher, urea is 148% more expensive, UAN32 is 171% higher, UAN28 179% is more expensive and anhydrous is 204% higher compared to last year.
DTN surveys more than 300 retailers, gathering roughly 1,700 fertilizer price bids, to compile the DTN Fertilizer Index each week. In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here.
Purdue University Extension recently released it 2022 Crop Cost and Return guide, which shows significantly higher cost estimates for fertilizer. You can read it here.
The recent DTN Global Fertilizer Outlook series focused attention to what the world expectation could be in 2022. This series examined the supply and demand of nutrients globally as well as what direction fertilizer prices could go in the New Year.
|Jan 4-8 2021||482||543||369||368|
|Feb 1-5 2021||554||601||389||429|
|Mar 1-5 2021||609||673||416||474|
|Mar 29-Apr 2 2021||618||697||429||502|
|Apr 26-30 2021||629||703||433||513|
|May 24-28 2021||652||709||443||523|
|Jun 21-25 2021||670||720||469||541|
|Jul 19-23 2021||695||750||543||553|
|Aug 16-20 2021||695||755||564||556|
|Sep 13-17 2021||702||776||598||572|
|Oct 11-15 2021||798||860||710||719|
|Nov 8-12 2021||821||906||762||832|
|Dec 6-10 2021||840||919||778||887|
|Jan 3-7 2022||863||931||807||913|
|Jan 4-8 2021||464||470||209||251|
|Feb 1-5 2021||502||507||239||272|
|Mar 1-5 2021||560||560||254||304|
|Mar 29-Apr 2 2021||599||685||340||377|
|Apr 26-30 2021||613||710||350||391|
|May 24-28 2021||619||719||361||407|
|Jun 21-25 2021||625||724||366||420|
|Jul 19-23 2021||632||736||365||419|
|Aug 16-20 2021||631||743||369||420|
|Sep 13-17 2021||632||762||381||428|
|Oct 11-15 2021||654||873||442||488|
|Nov 8-12 2021||719||1162||566||614|
|Dec 6-10 2021||756||1372||577||661|
|Jan 3-7 2022||795||1430||584||679|
Russ Quinn can be reached at firstname.lastname@example.org
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