Inputs Monitor Regional Index -- Heavy Precipitation Halts Crop Progress Again

May 6, 2013 05:10 AM
 

downloadHeavy weather over the Midwest led to another week of declines in nutrient pricing. Some record or near record precipitation events last week blanketed parts of the Corn Belt with snow, grinding crop progress to a halt.

One Iowa farmer lamented to me, "We had soil like a garden... just a little wet, and then this snow moves in. Now its gonna get all crusty on top and gummy below. Need some sunshine to dry it back out."

In response, declines outran gains by a margin of $14.68 -- nutrient declines posted movement adding up to $16.24 while gains could only muster $1.56 in upside action. UAN solutions and LP showed the only increases, but these were mild. We have been saying it for weeks now... retail nutrient pricing is stuck in the no-man's land of the transition from winter to spring.

Some strength in December corn futures could move nutrient pricing higher, but until seed is in the ground, it appears the Dec contract will continue to shop for a low.

December 2013 corn opened today at $5.37 and immediately gave up a nickel to the downside. We look for more downside potential in the Dec contract until traders see some positive planting news. At these levels, December corn yields $811.20/per acre gross revenue. That does not leave much confidence for nutrient purchases, and suggests growers may be hesitant to supplement forward booked product with cash-and-carry purchases.

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Anhydrous fell another $1.24 to $871.37; UAN28 adds $0.85 to $402.87; UAN32 adds $0.71 to $446.00; Urea moved an inspired $8.30 lower to $559.85 -- urea demand is currently focused on solutions as dry product struggles to win demand in the central Belt.

DAP moves $0.82 lower to $636.49 along with a $3.76 decline in MAP to $655.53.

Potash falls $0.60 to $587.34 after moving $2.64 higher during the previous week.

Farm diesel $0.051 lower at $3.422; LP up slightly, adding $0.008 to $1.468.

Nutrient/Fuel
4/22/13
4/29/13
Current Week
Week-over Change
Anhydrous
$874.30
$872.61
$871.37 -$1.24
DAP
$639.14
$637.31
$636.49 -$0.82
MAP
$659.08
$659.29
$655.53 -$3.76
Potash
$585.30
$587.94
$587.34 -$0.60
UAN28
$399.54
$402.02
$402.87 +$0.85
UAN32
$445.44
$445.29
$446.00 +$0.71
Urea
$568.84
$568.15
$559.85 -$8.30
Farm Diesel
$3.502
$3.473
$3.422 -$0.051
LP
$1.46
$1.46
$1.468 -$0.008
Composite
464.07
464.173
462.708 -1.47

 


 

 

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