December '13 Corn Weakens -- NPK Budget Response

March 7, 2013 07:59 AM
 

December 2013 Corn futures have found some room to the downside as traders reduce risk ahead of tomorrow's USDA S&D report which is expected to reflect a 17 million bu. increase in carryover from last month due to softer export and domestic feed demand. The result is December 13 corn trailing to $5.41 at midday, today.

This weaker position would pay $825.60 per acre based on 160 bu. per acre trendline yield. Given that, new NPK pricing resistance is established at $148.61 per acre for total NPK -- 18% of expected new-crop revenue.

The table below outlines Anhydrous pricing by N content per pound and the per acre cost for 175 lbsN/acre and 200 lbsN/acre application rates. A second table details how much cash per acre is left over for P&K based on the price of N per pound and by each of the two application rates.

Carryover nitrogen following last year's drought may figure in and an increasing number of growers report planning to cut back on pre-emerge N applications, relying more on post-emerge or late season sidedress. Click here for today's Monitor article from The University of Nebraska-Lincoln, 'Drought Soils Retain Unused NPK' for more on that.

 

Anhydrous $N/lb

175 lb/acre
200 lb/acre
Iowa
$0.52
$91.00
$104.00
Illinois
$0.54
$94.50
$108.00
Indiana
$0.55
$96.25
$110.00
Wisconsin
$0.54
$94.50
$108.00
Minnesota
$0.54
$94.50
$108.00
South Dakota
$0.54
$94.50
$108.00
North Dakota
$0.52
$91.00
$104.00
Nebraska
$0.50
$87.50
$100.00
Missouri
$0.53
$92.75
$106.00
Kansas
$0.50
$87.50
$100.00
Ohio
$0.57
$99.75
$114.00
Michigan
$0.55
$94.50
$110.00

 

The table below takes into account the above N figures and examines how much room is left in this updated NPK budget for P&K. The values below would have to be split between P&K depending on the needs of your soil profile, and assumes anhydrous ammonia as the nitrogen source. Anhydrous is currently offering the most bang for the nitrogen buck at a regional average of 53 cents per pound of nitrogen.

 
175 lbsN/acre P&K Budget
200 lbsN/acre P&K Budget
Iowa
$57.61
$44.61
Illinois
$54.11
$40.61
Indiana
$52.36
$38.61
Wisconsin
$54.11
$40.61
Minnesota
$54.11
$40.61
South Dakota
$54.11
$40.61
North Dakota
$57.61
$44.61
Nebraska
$61.11
$48.61
Missouri
$55.86
$42.61
Kansas
$61.11
$48.61
Ohio
$48.86
$34.61
Michigan
$52.36
$38.61

 


 

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