Farmers who are keeping a close eye on input costs can breathe a sigh of relief where fertilizer prices are concerned.
“We saw nitrogen prices bottom in late February and early March, and initially it looked like they were really going to take off on us,” said Davis Michaelson, inputs editor at Pro Farmer, on AgDay. “But then this week in our fertilizer price survey, we noticed that prices started to fall back again. (That) suggests to me that demand is beginning to come back and prices are able to come back down because dealers are starting to come to the end of sales for spring.”
Michaelson said he expects lower prices to continue for the months to come, but urges farmers to stay alert for buying opportunities. China is selling urea at prices close to breakeven, which is pushing nitrogen prices down. In the U.S., new fertilizer plants will be coming online.
The increased competition likely means good news for farmers as these fertilizer suppliers try to grab market share by offering appealing pricing.
“I like our chances for fall,” Michaelson said.