Demand for fertilizer around the world remains sluggish, with buyers and sellers far apart for many nutrients in many markets. Overall, weak demand means lower prices, making it difficult for most prices to trade at anything but sharply lower levels.
The exception appears to be potash, but there was good news on that front as well. The Potash Corp. Friday announced it had settled a strike at its three Canadian plants, that could get more product on the market.
The biggest change in prices this week came for anhydrous, which finally matched the free fall seen in the urea market – at least internationally. Prices out of the Black Sea dropped another $90 a short ton, completing an astonishing $500 drop in less than two months. U.S. prices at the Gulf remain well above that, around $521, but should also be headed lower. In fact, Black Sea prices would translate into a farm gate price of around $500 a ton, if suppliers can get financing to do the deals.
That remains a big if, because some are sitting on high-priced inventory. However, a Farm Futures online survey suggests there should be plenty of demand. Almost 70% of those responding to the poll said they had bought no fertilizer for 2009.
The dramatic crash in prices on international markets may be starting to probe for a bottom, right about the time when fertilizer normally provides the best seasonal values. Urea prices have stabilized at the Gulf at around $300 to $320 a ton, although Black Sea prices suggest lower trade is possible this winter.
DAP is also steady around $700 a ton, but bids for December and January are sharply lower, down to $450. Sellers are reported to be offering $600, producing a stalemate so far.
Meanwhile, prices for natural gas are trying to stabilize as well, as the heating season gets underway in the U.S. Futures tested $7 following a bullish weekly report that showed gas in storage increasing only 12 billion cubic feet, less than half the expected amount. With temperatures forecast to be below average for the next two weeks, supplies could start to be drawn down soon.
Commodity Cost Cost/Lb Cost/Unit Actual Coop in ND today.
28-0-0 $ 465.00 Ton $ 0.2325 $ 0.83 N
46-0-0 $ 610.00 Ton $ 0.3050 $ 0.66 N
0-0-60 $ 915.00 Ton $ 0.4575 $ 0.76 K
18-46-0 $ 1025.00 Ton $ 0.5125 $ 1.11 P
82-0-0 $ 950.00 Ton $ 0.4750 $ 0.58 N
82-0-0
Their Tank $ 940.00 Ton $ 0.4700 $ 0.57 N
10-34-0 $ 1100.00 Ton $ 0.5500 $ 1.62 P
13-13-13 25.00 / 50#Bag
N = Nitrogen P = Phosphate K = Potash
$10 per ton Cash Discount
Further south tomorrow.
The exception appears to be potash, but there was good news on that front as well. The Potash Corp. Friday announced it had settled a strike at its three Canadian plants, that could get more product on the market.
The biggest change in prices this week came for anhydrous, which finally matched the free fall seen in the urea market – at least internationally. Prices out of the Black Sea dropped another $90 a short ton, completing an astonishing $500 drop in less than two months. U.S. prices at the Gulf remain well above that, around $521, but should also be headed lower. In fact, Black Sea prices would translate into a farm gate price of around $500 a ton, if suppliers can get financing to do the deals.
That remains a big if, because some are sitting on high-priced inventory. However, a Farm Futures online survey suggests there should be plenty of demand. Almost 70% of those responding to the poll said they had bought no fertilizer for 2009.
The dramatic crash in prices on international markets may be starting to probe for a bottom, right about the time when fertilizer normally provides the best seasonal values. Urea prices have stabilized at the Gulf at around $300 to $320 a ton, although Black Sea prices suggest lower trade is possible this winter.
DAP is also steady around $700 a ton, but bids for December and January are sharply lower, down to $450. Sellers are reported to be offering $600, producing a stalemate so far.
Meanwhile, prices for natural gas are trying to stabilize as well, as the heating season gets underway in the U.S. Futures tested $7 following a bullish weekly report that showed gas in storage increasing only 12 billion cubic feet, less than half the expected amount. With temperatures forecast to be below average for the next two weeks, supplies could start to be drawn down soon.
Commodity Cost Cost/Lb Cost/Unit Actual Coop in ND today.
28-0-0 $ 465.00 Ton $ 0.2325 $ 0.83 N
46-0-0 $ 610.00 Ton $ 0.3050 $ 0.66 N
0-0-60 $ 915.00 Ton $ 0.4575 $ 0.76 K
18-46-0 $ 1025.00 Ton $ 0.5125 $ 1.11 P
82-0-0 $ 950.00 Ton $ 0.4750 $ 0.58 N
82-0-0
Their Tank $ 940.00 Ton $ 0.4700 $ 0.57 N
10-34-0 $ 1100.00 Ton $ 0.5500 $ 1.62 P
13-13-13 25.00 / 50#Bag
N = Nitrogen P = Phosphate K = Potash
$10 per ton Cash Discount
Further south tomorrow.
Comment