OMAHA (DTN) -- Potash prices rose significantly compared to last month, while the average retail price of DAP reached a 10-year high, according to prices tracked by DTN for the second week of September 2021.
Potash was 6% higher compared to last month. The fertilizer had an average price of $598/ton.
The remaining seven fertilizers were all just slightly higher. DTN designates a significant price increase as 5% or more.
Four fertilizers had price increases of 3% compared to last month. MAP had an average price of $776/ton, urea $572/ton, anhydrous $762/ton, and UAN28 $381/ton.
The price of UAN32 increased 2% to $428/ton.
DAP prices increased 1% to $702/ton. The average price of 10-34-0 was fractionally higher at $632/ton. DAP rose above $700/ton for the first time in nearly 10 years. The last time the phosphorus fertilizer's price was this high was the second week of Dec. 2011 when the average price was at $702/ton.
On a price per pound of nitrogen basis, the average urea price was at $0.62/lb.N, anhydrous $0.46/lb.N, UAN28 $0.68/lb.N and UAN32 $0.67/lb.N.
There's more evidence fertilizer supply shortages could be coming. Last week, two major fertilizer manufacturers announced they were shutting down European facilities due to a relatively new issue facing fertilizer production -- high natural gas prices. (You can find more on rising natural gas prices here: https://www.wsj.com/…)
On Sept. 15, CF Industries announced a halt in operations at two manufacturing facilities in the United Kingdom. Plants in Billingham and Ince, UK, are stopping production.
"The company does not have an estimate for when production will resume at the facilities," according to a CF Industries press release.
Then on Sept. 17 Yara announced it will curtail production at a at number of its European plants because record high natural gas prices in Europe are affecting ammonia production margins, according to a Yara press release.
By this week, Yara will have shut down around 40% of its European ammonia production capacity.
"Yara will continue to monitor the situation, with the objective to keep supplying customers but curtailing production where necessary," according to a press release.
Retail fertilizer prices compared to a year ago show all fertilizers have increased significantly.
10-34-0 is now 39% more expensive, urea is 59% higher, DAP is 62% more expensive, UAN32 is 69% higher, MAP is 73% more expensive, both potash and UAN28 are now 74% higher and anhydrous is 77% more expensive compared to last year.
DTN surveys more than 300 retailers, gathering roughly 1,700 fertilizer price bids, to compile the DTN Fertilizer Index each week. In addition to national averages, MyDTN subscribers can access the full DTN Fertilizer Index, which includes state averages, here: https://www.mydtn.com/….
Fertilizer manufacturer CF Industries announced they restarted ammonia plants at the Donaldsonville (Louisiana) Complex after Hurricane Ida. You can read it here: https://www.dtnpf.com/….
Russ Quinn can be reached at firstname.lastname@example.org
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