Fertilizer Prices?

[SASKFARMER3]

Fertilizer prices move higher again at the Gulf, but buyers resist.Anhydrous prices at the Gulf shot sharply higher last week, with new trades $175 a ton higher as prices matched those on international markets including freight. However, the $845 price was indicative of a market where buyers are starting to balk. Prices for some fertilizers actually dropped a bit as buyers wonder if falling energy prices and easing commodity prices could finally begin to dent demand.
Certainly the cost of natural gas, the feedstock for nitrogen fertilizers, is a relative bargain. Futures prices dropped sharply this week after Hurricane Gustav appeared to do little damage to platforms and pipelines. Ammonia plants near the Gulf could be another story, however, as the power grid in the region was knocked off and has been slow to return.
Natural gas futures tested $7 this week and could stay weak following Thursday’s inventory report. The government reported gas in storage was up 90 billion cubic feet ahead of Gustav; traders expected an increase of 88 bcf.
May 01, 08 453 605 482 1727

May 08, 08 438 625 485 1727

May 15, 08 429 643 489 1727

May 22, 08 No prices

May 29, 08 434 648 421 1727

Jun 05, 08 445 625 420 1727

Jun 12, 08 453 625 430 1727

Jun 19, 08 510 618 455 1727

Jun 26, 08 525 634 461 1727

Jul 03, 08 545 683 462 1727

Jul 10, 08 545 727 460 1727

Jul 17, 08 625 758 464 1727

Jul 24, 08 650 808 519 1727

Jul 31, 08 775 820 516 1727

Aug 07, 08 810 815 543 1727

Aug 14, 08 800 793 523 1727

Aug 21, 08 843 770 532 1727

Aug 28, 08 853 790 530 2268

Sep 04, 08 880 803 519 2268

Watch for back lash to hit pretty soon.

[silverback]

We will not be buying fertilizer at these levels.

[GreenValley]

Couple days ago got the latest price at Rimbey, for 46-0-0 $950, 12-52-0 $1350, 0-0-0-60 $600. In my option for that price next year, input will be most expensive so likely the hardest hit will be canola next year and thus, canola acre overall in Canada will be likely drop than average for 2009, in my option. This year final report acreage for 2008 canola is 15.81 million and 2007 was 14.8 million acres and in 2009 what acreage would be?? Hear that farmers may give up seeding canola and switch to cereal crop in 2009.