Most Fertilizer Prices Lower Again Third Week of May 2023

OMAHA (DTN) -- Average retail prices for most fertilizers were lower again the third week of May 2023, according to sellers surveyed by DTN.

Prices for five of the eight major fertilizers were lower compared to last month. Only one fertilizer was substantially less expensive. DTN designates a significant move as anything 5% or more.

Leading fertilizers lower in price was anhydrous. The nitrogen fertilizer was 10% less expensive compared to last month with an average price of $895 per ton.

Four other fertilizers (potash, urea, 10-34-0, UAN28) were slightly lower looking back a month. Potash had an average price of $627 per ton, urea $619/ton, 10-34-0 $739/ton and UAN28 $421/ton.

The remaining three fertilizers were slightly higher in price than a month ago. DAP had an average price of $829/ton, MAP $831/ton and UAN32 $514/ton.

On a price per pound of nitrogen basis, the average urea price was $0.67/lb.N, anhydrous $0.55/lb.N, UAN28 $0.75/lb.N and UAN32 $0.80/lb.N.

The total number of fertilizer carloads originated by Class I railroads for the week ended May 6, 2023, was 6,550 -- an all-time high since the Surface Transportation Board (STB) began collecting the data in March of 2017, according to the May 18 USDA Grain Transportation Report (https://www.ams.usda.gov/…).

For the first 12 weeks of 2023, fertilizer carloads were 2% fewer than the prior five-year average. However, in the weeks since then (weeks 13 through 19), fertilizer carloads have risen, and are now 3% above the five-year average.

"The rise in fertilizer carloads comes amid lower fertilizer prices from last year, higher corn plantings than last year and restricted upbound barge traffic on the Mississippi River due to flooding," the report said.

All fertilizers are now lower double digits compared to one year ago. 10-34-0 is 18% less expensive, DAP is 22% lower, MAP is 23% less expensive, potash is 29%, UAN32 are 30% lower, UAN28 is 34% less expensive, urea is 38% less expensive and urea is 41% lower compared to a year prior.

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

In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….

Fertilizer costs in 2023 are considerably less than in 2022, according to Purdue University Extension crop budgets. You can read about it here: https://www.dtnpf.com/….

Russ Quinn can be reached at [email protected]

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