Look at fertilizer pricing 2013 vs. 2014
The May 2014 approximate retail prices for bulk purchases of major fertilizers per ton compared to May 2013, published in the USDA Illinois Market Report are shown in the table below. All major fertilizers except urea were cheaper in May 2014 compared to a year ago.
Fertilizer May 2014 May 2013
Anhydrous ammonia $755 $888
Urea 541 527
Urea-UAN 28% 372 392
Potash 465 567
DAP 597 600
MAP 590 614
The year-to-year price variations during this period are shown in Figure 1. As expected, most fertilizers rallied from dramatic off-season price drops that started in August 2013.
Industry specialists, such as David Asbridge, president of the NPK Fertilizer Advisory Service, believe that the strong urea market was due to shortages in supplies. The Russia/Ukraine situation has hurt some production out of Eastern Europe. Also, urea imports into the U.S. have been lower than expected in the Gulf Coast as well as from Canada due to the railroad issues and frozen rivers in the cold winter. The expectation is that urea prices will weaken during the summer lull. Also, the Chinese are set to export a record 8.5-9.5 million tons of urea this year, which will depress the market as well.
Michigan State University Extension emphasize that despite the current favorable fertilizer market, any unforeseen deterioration in global economic and political conditions can cause dramatic price shifts, impacting local farmers.
- US soy exports to China could drop with crush-margins at 2-yr low
- Corn to see record production for 2014-15
- Maximizing buyer power in volatile markets
- Insight into drought tolerance of TAM wheat varieties
- Ag markets turned mostly lower Tuesday morning
- GMO safety, weed control top concerns as U.S. study kicks off
- U.S. GMO labeling foes triple spending in first half of this year
- Activists fighting Golden Rice even more in 2014
- Source shows half of GMO research is independent
- White House issues veto threat on bill to block WOTUS rule
- Stoller soybean research produces 214 bushels per acre
- Ag markets turned generally mixed Monday morning