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| Retail fertilizer prices continue to show very little movement during the fifth week of November 2011, with one notable exception.
After many months of increasing or steady prices, UAN32 showed a 9% decrease in price compared to one month earlier. The liquid nitrogen fertilizer now has an average price of $458 per ton.
The remaining seven major fertilizers all showed slight price changes in either direction during the last month.
Four fertilizers were slightly lower compared to last month. DAP had an average price of $708/ton, MAP $742/ton, potash $660/ton and UAN28 $406/ton.
Three fertilizers were slightly higher in price. Urea had an average price of $621/ton, 10-34-0 $827/ton and anhydrous $813/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.68/lb.N, anhydrous $0.50/lb.N, UAN28 $0.72/lb.N and UAN32 $0.72/lb.N.
Fertilizer retailers are preparing for the year-end rush as farmers buy inputs before the last day of the year for tax purposes. Matt Potocnik, location manager for Heartland Coop Services located in Dorchester, Wis., said he has seen a pick-up in recent weeks in farmers calling and looking to spend some money before the new year.
"Really, it is usually that week between Christmas and New Year's that all hell breaks loose," Potocnik said "Right now they are talking to their tax preparers and deciding if they really need to spend some money before the end of the year."
This year's rush to lock in fertilizer at year's end could include more customers than it normally does, he said. Not only have grain farmers in their north-central Wisconsin area been profitable this year, but the region's dairy farmers have enjoyed higher milk prices.
Potocnik said while fertilizer prices have been steady for months now, he has recently adjusted some fertilizer prices lower. New prices for urea, potash and DAP all were lower compared to this fall.
However, this shift to the low side could be short-lived, Potocnik said.
"Fertilizer is still tied to commodities, and if they rally after the first of the year like a lot folks think could happen, these fertilizer prices are going to start to rise once again," he said.
Six of the eight major fertilizers continue to show double-digit increases in price compared to one year earlier. Leading the way higher is 10-34-0. Prices for the starter fertilizer had skyrocketed early this year, but now have fallen back. Those prices are now 55% higher compared to the fourth week of November 2010.
Urea has jumped 30% higher while potash has increased 21% from a year ago and UAN32 is now 19% higher. UAN28 is now 18% higher and anhydrous has climbed 13% higher, compared to year earlier.
The two phosphorus fertilizers continue to bring up the rear. MAP is 7% more expensive while DAP is 6% higher, compared to November of 2010.
DRY
Date Range DAP MAP POTASH UREA
Nov 28 - Dec 2 2011 708.43 741.94 660.02 621.29
Liquid
Date Range 10-34-0 ANHYD UAN28 UAN32
Nov 28 - Dec 2 2011 826.50 812.99 405.85 457.67
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Fert Trends...!
