Latest Data Shows Drop in Fertilizer Prices

Last week, it was reported that the average retail prices for fertilizer had dropped from their end-of-March prices. Despite the prices being lower, only the anhydrous fertilizer was significantly less expensive. Anhydrous ammonia (NH3) is a widely used and efficient source of nitrogen fertilizer. It is readily available to producers because it is relatively easy to apply. It should be noted, however, that if not handled properly, this fertilizer can be dangerous.

Data shows that the nitrogen fertilizer was 5% lower in comparison to March’s figures, going for $1,026 per ton. The prices of other fertilizers, including DAP, MAP, urea, potash, 10-34-0 (ammonium polyphosphate), UAN (urea-ammonium nitrate) 28 and UAN 32, were only slightly lower than their March prices. 10-34-0 is primarily used to encourage root development while UAN fertilizers help deliver nitrogen to young crops, encouraging production.

The average price of MAP was $810 per ton while that of DAP was $818 per ton. Urea was going for $626 per ton while potash went for $644 per ton. While UAN28 and UAN32 went for $428 per ton and $513 per ton respectively, the price of 10-34-0 stood at $741 per ton. Compared to last year’s prices, 10-34-0 is 17% less expensive, UAN32 is 28% less expensive, MAP is 23% less expensive, DAP is 21% lower and potash is 26% lower. Both UAN 28 and anhydrous are also 33% lower while urea is 39% less expensive.

In a separate report from Cobank, Kenneth Scott Zuckerberg indicates that in comparison to 2022’s first quarter when fertilizer prices soared significantly, prices have fallen during this year’s first quarter. Zuckerberg noted that this happened amid general inflation and downward pressure on energy, grain and other commodity prices.

Last year’s spike in the price of fertilizer and natural gas was caused by the invasion of Ukraine by Russia, which affected production as well as supply chains. With predictions citing higher natural gas prices come summer, Zuckerberg believes a low point for the price of nitrogen may soon be reached.

The Agricultural Market Information System also noted in its April Market Monitor report that the price of fertilizer continued to decline in March due to easing of supply constraints and weakening demand, especially for nitrogen fertilizers. The agency notes that reducing production costs for urea and ammonia will be good for supply, adding that potash and DAP supply may still experience issues due to sanctions and trade restrictions.

As fertilizer prices slowly return to their pre-Ukraine war levels, producers such as Compass Minerals International Inc. (NYSE: CMP) could see more stability in their supply chains and market.

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