Why is Canadian Fert Going up in price for most products yet our US cousins are seeing it drop?
Farm gate fertilizer prices are continuing to ease a little, as farmers remain stubborn about buying high-priced inventory. But while the nutrient market is mostly quiet, the action from corporate boardrooms is anything but, thanks to ongoing takeover battles.
In its bi-weekly survey of Illinois prices, USDA reported fertilizer costs were down across the board. Still, prices remained well above values suggested by international markets, because dealers are stuck trying to sell high-priced inventory bought last fall at all-time highs.
Anhydrous, for example, was quoted down almost $23 a ton, according to USDA, with the average price $715, in a range from $615 to $875. However, international prices suggest a true farm gate price is more like $475 to $500, based on Farm Futures model of historical relationships.
Terminal prices for ammonia were mixed this week. Prices at the Gulf were steady around $250, but rose $12.50 out of the Black Sea to $223.75.
Those prices suggest domestic sources are likely to be competitive, thanks to ongoing weakness in the natural gas market, which continues to hover just above $4. Supplies in storage fell 102 billion cubic feet in the latest week, in line with estimates for a 100 bcf drop.
Quotes for the other major nitrogen fertilizer, urea, also eased. USDA reported Illinois prices down almost $19 a ton, with the average $470.50 in a range from $385 to $625, while wholesale prices at the Gulf eased almost $10, to $296.
DAP prices, meanwhile were down $37 in Illinois.
So again I ask why in Canada is getting a confirmed price on Anhydrous a real problem and why fert is not dropping here.
Seeding is beginning in Texas so yes they are using up product but why are our companies still gouging farmers!
Farm gate fertilizer prices are continuing to ease a little, as farmers remain stubborn about buying high-priced inventory. But while the nutrient market is mostly quiet, the action from corporate boardrooms is anything but, thanks to ongoing takeover battles.
In its bi-weekly survey of Illinois prices, USDA reported fertilizer costs were down across the board. Still, prices remained well above values suggested by international markets, because dealers are stuck trying to sell high-priced inventory bought last fall at all-time highs.
Anhydrous, for example, was quoted down almost $23 a ton, according to USDA, with the average price $715, in a range from $615 to $875. However, international prices suggest a true farm gate price is more like $475 to $500, based on Farm Futures model of historical relationships.
Terminal prices for ammonia were mixed this week. Prices at the Gulf were steady around $250, but rose $12.50 out of the Black Sea to $223.75.
Those prices suggest domestic sources are likely to be competitive, thanks to ongoing weakness in the natural gas market, which continues to hover just above $4. Supplies in storage fell 102 billion cubic feet in the latest week, in line with estimates for a 100 bcf drop.
Quotes for the other major nitrogen fertilizer, urea, also eased. USDA reported Illinois prices down almost $19 a ton, with the average $470.50 in a range from $385 to $625, while wholesale prices at the Gulf eased almost $10, to $296.
DAP prices, meanwhile were down $37 in Illinois.
So again I ask why in Canada is getting a confirmed price on Anhydrous a real problem and why fert is not dropping here.
Seeding is beginning in Texas so yes they are using up product but why are our companies still gouging farmers!
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