NH3 Prices

[crusher]

There's a discussion on NH3 over in Crop Production forum, please add comments because there's lots of dollars at stake!

[TOM4CWB]

Crusher;

The $.40/lb was fairly common on fall application... with the $.38/lb about the lowest I heard of in our area.

I would be surprised if any one can find a spring 06 price that can be locked in at these values.

It is good to know what NH3 did trade for this fall.

NH3 in the US is at $550/t now in Iowa... they said that they were paying $400/t this fall (05)for what was going on the ground a couple of months ago.

Here is a few words from the DTN article I saw a few days ago.

"Besides being an energy source, natural gas is a key ingredient for nitrogen-based fertilizers such as anhydrous ammonia.

Anhydrous ammonia now is selling for about $535 a ton in northwest Iowa, Sexton said. Producers from Nebraska to Indiana now are seeing prices approaching $550 to $565 a ton. At that cost, applying 135 pounds of nitrogen per acre means a producer would spend $46.69 an acre to apply necessary nitrogen.

Anhydrous ammonia is the most concentrated application of nitrogen at 82 percent.

Corn-on-corn rotations often require even higher volumes of nitrogen applications per acre while a soybean crop relies much less on nitrogen.

Ervin Caselton, agronomy manager for Evergreen FS Inc. in Bloomington, Ill., said the bulk of fertilizer in his area was applied in the fall when prices were around $400 an acre. That still caused producers to get away from the corn-on-corn acres, he said.

"I think that's shifted back to a normal rotation of corn to beans," Caselton said."



I personally was/am surprised that US grain growers were getting NH3 at 400/t this fall.

$.38/b is about $700/t @ $.85 CDN exchange that leaves $600/t.

If $550/tUSD is the selling price Down there right now... that should mean you could find a $700/t NH3 price.

Happy hunting!

[wedino]

SE Sask prebuy $795 delivered.

[wedino]

Discussion re: NH3 price stateside.

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