Apr 23, 2014
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Inputs Insights

RSS By: Davis Michaelsen, Pro Farmer

Inputs Monitor Editor Davis Michaelsen adds his perspective into the happenings of the inputs markets.

April in Review -- Weather Fuels Declines as Application Window Shrinks

May 03, 2013

tractorsnow April didn't turn out the way any of us thought. Cool temperatures and record or near-record amounts of precipitation still have most growers across the Midwest pacing in their machine sheds, waiting for soil conditions to allow iron in the field. We observed some strong moves to the upside in nutrient pricing in Missouri as early fieldwork in that state created a demand push this month and the expectation has been for nutrient pricing increases to follow crop progress northward.

This may not be the case, however, as the late start to spring may leave growers little time for fertilizer applications. Demand will decline as the planting window shrinks, and I expect many growers will look to make up the difference post-emerge with UAN sidedress -- suggesting upside room for UAN solutions ahead.

Dry urea continues to decline after mild increases during the first two weeks of April, but as more growers book nutrient for sidedress later on, 28% and 32% solutions post the largest month-over gains. The largest move to the downside came from anhydrous which was on a generous downward trajectory the entire month.

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Declines in nutrient pricing outweighed gains by a margin of just 42 cents. We expected hand-to-mouth demand to move nutrient pricing higher, but $22.55 in total declines was just enough to edge out $22.13 in gains.

Anhydrous declined $9.39 to end the month at $872.61/ton; Urea moved a modest $2.51 lower to $568.15; UAN28 added $7.77 to end the month at $402.02; UAN32 firmed $10.07 posting the largest increase in this month's index to $445.29.

DAP moved $3.10 lower to $637.31; MAP moved higher, adding $4.29 to end at $659.29.

Potash fell $7.44 to end the month at $587.94. Potash did show some strength during the last week of April adding $2.64 that week, and as the oversupply in Saskatchewan corrects itself, potash may catch an upward draft near-term.

Farm diesel maintained downward movement the entire month, down $0.077 all told to $3.473/gallon.

LP was very flat, offering a 3 1/2 cent decline during the third week of April as the only movement this month. LP down $0.035 to $1.46.

Nutrient/Fuel
4/1/13
4/29/13
Month-over Change
Anhydrous
$882.00
$872.61
-$9.39
DAP
$640.41
$637.31
-$3.10
MAP
$655.00
$659.29
+$4.29
Potash
$580.50
$587.94
-$7.44
UAN28
$394.25
$402.02
+$7.77
UAN32
$435.22
$445.29
+$10.07
Urea
$570.66
$568.15
-$2.51
Farm Diesel
$3.550
$3.473
-$0.077
LP
$1.495
$1.46
-$0.035
Composite
462.566
464.173
+1.607

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A lot happened in the world of nutrient and energy during April. Follow the links below to catch up on what you may have missed in the news, on the farm, upstream and in energy news.

In the news...

Explosion at Texas Fertilizer Facility Claims Lives, Several Injured

California Senator Urges EPA Investigation of West, TX Explosion

Donations to West, Texas Lag Boston

Natural Gasoline Barges Explode in Mobile Bay

On the farm --

Is there Nitrogen in Snow?

December Corn vs Anhydrous -- Thinning the Revenue Gap

Price Comparison -- NPK From Thanksgiving 2012 to Today

Nitrogen Uptake Favors Modern Hybrids

Upstream --

Agrium Shareholders Overwhelmingly Support Incumbent Board

JANA Cries 'Foul' in Scathing Letter

The View From Upstream -- Correction or Correction?

Energy --

Ukraine More Than Doubles Gas Imports From Europe

Up, Up and Away -- Natural Gas Lingers at the Top

How Far Can North Dakota Crude Fall?

EIA Short-term Energy Outlook -- Fuel Efficiency to Outpace Miles Traveled


 

 

 

 

 

 

 

 

 

 

 

 

 

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