By Katie Dehlinger, Farm Business Editor

Summer Slump in Retail Fertilizer Prices Continues

Although retail fertilizer prices continue to slip lower amid low demand, that's typical of summertime and prices remain higher than last year. Global supply problems that have contributed to sharply higher year-over-year prices have led one major producer to announce more production cuts.

MT. JULIET, Tenn. (DTN) -- Retail fertilizer prices continue to drift lower like they have much of the summer, according to retailers tracked by DTN for the fourth week of July 2022. But with anhydrous still costing more than $1,400 per ton, the lower prices are unlikely to offer farmers much peace of mind.

While prices for seven of the eight major fertilizers are lower, none dropped by a significant amount, which DTN considers a price change of 5% or more in a month.

For phosphates, the average price of DAP was $1,005 per ton, while MAP cost $1,041/ton.

Nitrogen fertilizers prices declined by 1% to 3% compared to last month. Urea had an average price of $836/ton; anhydrous, $1,431/ton; UAN28, $596/ton; and UAN32, $693/ton.

The average price of starter 10-34-0 fertilizer was $894/ton.

The only fertilizer with a slightly higher price was potash at $887/ton.

On a price per pound of nitrogen basis, the average urea price was $0.91/lb.N, anhydrous $0.87/lb.N, UAN28 $1.06/lb.N and UAN32 $1.08/lb.N.

Global supplies of anhydrous continue to tighten as Europe reduced its reliance on natural gas from Russia. Last week, BASF announced it would reduce production of ammonia amid Moscow's decision to reduce natural gas flows on the Nord Stream pipeline to 20% of capacity.

BASF CEO Martin Brudermuller said skyrocketing natural gas prices pose a unique burden because the company uses it to generate power for many of its plants as well as a feedstock for products, Dow Jones Newswires reports.

"Ammonia is in a difficult situation. Next year's availability of fertilizer might be worse. Fertilizer prices are skyrocketing," Brudermuller said. You can find more of Brudermuller's comments here:

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Most fertilizers continue to be considerably higher in prices than one year earlier.

MAP is 38% more expensive, 10-34-0 is 42% higher, DAP is 45% more expensive, urea is 51% higher, potash is 62% more expensive, UAN28 is 63% higher, UAN32 is 66% more expensive and anhydrous is 94% higher compared to last year.

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

Even though fertilizer prices have stabilized or declined since Russia's invasion of Ukraine, prices remain significantly elevated and may deter farmers from pricing their fertilizer ahead of time. You can read more here:

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Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
exactrix@exactrix.com