Fertilizer Sales Slump

October 27, 2014 12:00 PM
Fertilizer Sales Slump

Anecdotal evidence suggests producers are less fertilizer this fall than normal, which might result in fewer corn-on-corn acres in 2015, analysts say.

Power Hour Noon Logo“I’ve talked to a couple or three different guys at co-ops and … they’re very worried, kind of hoping that maybe it’s going to pick up a little bit,” notes Matt Bennett, Bennett Consulting. He continues: “I’m probably a little more friendly long-term just simply because I think we’re going to have to buy the acreage if we don’t get it bought moving forward. I think we’re going to really get a rally.”

For now, corn prices are favorable in parts of the Midwest.

“Basis has been pretty good, at least in my corner of the world, because harvest has been slow in Michigan and other parts of the area, Ontario especially,” adds Angie Maguire, Citizens LLC. “So what we’ve been doing is putting the basis on the February-March stuff and just making sure we know what needs to be moved and getting it moved. I’ve had some guys get started $4 HTAs. I think if played right, we could end up with some decent cash prices on those, but for the most part we’ve been worried more about what’s going to come off the combine this fall if there isn’t storage and you don’t have that ability to kind of wait.  That’s what we’ve been focusing on with some marketing plans and putting open orders into the ’15.”

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Spell Check

Mike Dobesh
Wood River, NE
10/28/2014 06:53 AM

  I can understand, but not agree when fertilizer price goes up with the corn price. But last year in August I had all my fertilizer purchased and delivered, as I have the storage and the price was the best. But at that time you still could have forward contracted $5.00 corn for 2014. Now this August fertilizer prices are much higher than last year, with $5.00 corn no where in the forseeable future. So how does one raise the the same or better yields with less input costs? I'm switching to products using a new technology called Nano. A low salt 32 0 0 as well as a product called Revolution 2.0 that will make herbicide tolerant weeds a thing of the past. Big fertilizer and chemical companies just care about their bottom line not yours. How can fertilizer companies justify higher prices when corn prices are so low, and natural gas prices have not risen that much? There are ways to grow a good crop for less using unconventional means like humates, micro mixes, folier fertilizers, and soil revitelizers. No your local coop wont tell you about those things because they are getting kickbacks from chemical companies who premote the same ole same ole tons of fertlizer and as meny chemicals as you can afford. I found products using this new Nano technology at Maxsystemsag.com Its definatly worth a look


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