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Retail Fertilizer Prices Stabilize, Whole Markets Drift Lower

Falling global acreage has demand remaining stagnant, keeping a lid on prices.
Bryce Knorr 
Published: May 15, 2009

With farmers busy in the field — or at least hoping to be — fertilizer prices are mostly stable at the retail level, though wholesale prices continue to move mostly lower. Summer bids remain very attractive on international markets, with demand remaining stagnant in the face of falling global crop acreage.

The biggest drop this week reported by USDA's survey of Illinois prices showed potash down $14.25 a ton on average, to $786, in a range of $698 to $850. The bottom end of that range isn't far from the recent price in the export market out of Canada, at $644 a ton. However, potash prices remain much more expensive on world markets than other fertilizers, which cashed after reaching record levels last fall. Potash inventories continued to build, starting May well above five-year averages.

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