Fertilizer Markets are Quiet, Companies not so Much
Look for good deals and get ready to act as the prices seek direction this summer.
Bryce Knorr
Published: Jun 26, 2009
Fertilizer markets were mostly quiet this week, with more signs prices are trying to make seasonal bottoms despite ongoing turmoil in the industry.
DAP prices in U.S. and international wholesale markets edged fractionally higher, quoted around $260 a ton at the Gulf. That indicates a fair farmgate price around $375. Wholesale prices are $10 more on forwards for July, with the farm price around $400, so producers should be ready to pounce on any good deals. USDA's survey of Illinois input prices found the low end of the range for DAP at $400, suggesting some producers are getting reasonable offers. However, the average reported by USDA was $466.69, with the high at $595.
Ammonia prices were steady at the Gulf with prices quoted at $210 a ton. July prices are at $192.50 with August at $190, but start to increase after that. Current prices translate into a farmgate price of $355 to $410, with forwards about $15 cheaper. Illinois prices were quoted in a range of $500 to $650 this week, with the average at $575.71, so producers should be holding out for better deals from suppliers with access to fresh inventory.
For more information check out the Weekly Fertilizer Report .
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Tagged: usda, fertilizer, farm
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