Inputs Monitor Regional Index -- Farm Diesel and Urea Turn Around

June 3, 2013 04:06 AM
 

rain soaked 002 (2)Nutrient pricing softened again this week as declines outpaced gains by a margin of 9.742 -- declines totaled $10.81 to gains' $1.068. The Midwest continues to deal with excessive precipitation which has left some fields still very wet as growers look to finish off corn plantings and move on to beans. Another round of showers is expected to begin in the central Belt Tuesday.

December corn futures found some strength -- opening today at $5.65 -- and trends suggest positive price movement in corn futures can firm retail nutrient pricing. At a projected yield of 152bu/acre, current Dec corn pricing adds up to $858.80 in new-crop revenue. Your target of 18% is $154.58/acre for NPK.

Upward movement was found in urea and farm diesel. We advised last week to consider booking some farm diesel and to wait on urea. Both of those decisions must be based on your appetite for risk.

We and others in the industry expect declines in urea after July 1, but the question is, will urea bounce in the meantime, and, if it does, will it come back down to current levels?

Farm diesel pricing has shown a tendency to move higher through the summer and this week's report may have captured the turnaround. Read last week's article on booking farm diesel.

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Anhydrous moved $1.63 lower to $869.07; UAN28 $0.98 lower to $400.86; UAN32 lower, dropping $2.65 this week to $438.54.

Urea moved $1.06 higher to $563.15.

DAP $1.46 lower to $632.60 along with a $2.59 decrease in MAP to $649.52.

Potash falls $1.50 to $579.29/ton.

Farm diesel $0.008 higher this week at $3.431/gallon; LP down slightly, shaving $0.003 off the regional price to $1.446/gallon.

Nutrient/Fuel
5/20/13
5/28/13
Current Week
Week-over Change
Anhydrous
$874.39
$870.70
$869.07
-$1.63
DAP
$636.79
$634.06
$632.60
-$1.46
MAP
$655.45
$652.11
$649.52
-$2.59
Potash
$584.91
$580.79
$579.29
-$1.50
UAN28
$401.67
$401.84
$400.86
-$0.98
UAN32
$441.51
$441.19
$438.54
-$2.65
Urea
$562.48
$562.45
$563.51
+$1.06
Farm Diesel
$3.432
$3.423
$3.431
+$0.008
LP
$1.459
$1.449
$1.446
-$0.003
Composite
462.457
460.893
459.810
-1.083

 


 

 

 

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