Inputs Monitor Regional Index: Fuels Tick Higher, Nutrient Slides

August 12, 2013 04:35 AM
 

Decliners tallied $57.67 to gains' 4 1/4 cents. Nitrogen pricing led the downward charge with anhydrous strongly lower. But not all states declined. Urea showed a little price strength adding a good $12 in Iowa and $5 in Indiana, but was down overall. All nutrients moved lower regionally during the report week for the second consecutive week.7 21 13 038 (2)

Nutrient still has some room to the downside, but if these prices are too good to pass up, consider filling just a portion of needs now. Declines ahead are expected to be mild.

Fuels continue to firm and we believe the floor is in place for farm diesel. Gains for both farm diesel and LP have been modest in regionwide averages, but a closer look state-on-state shows some strong increases. Year-over data, declining distillate stocks and historically high WTI crude prices couple with industry experience to suggest, while still above year-ago, farm diesel is headed higher.

Last year's pop in farm diesel pricing was from $3.17 to $3.31 and the following week prices firmed another eleven cents to $3.42. One year ago this week, farm diesel continued higher, adding another 9 cents to $3.51 and stayed well above $3.50 until January.

Futures --

December corn futures opened today at $4.53 and not much is happening as traders look ahead to today's USDA reports. Fair weather continues to beat this contract down and scattered timely rains across parts of the Midwest during the weekend will do nothing to elevate prices. Stay tuned to ProFarmer.com for all the details later this morning.

September 2013 natural gas futures opened today at $3.33 -- right back where it was last Monday. Continued price strength in WTI plus strong injections into storage are limiting upside action for natgas futures. Look for natgas to move higher once WTI falls, but we do not expect WTI to fall soon.

We have advised filling portions of natgas needs along the way and we still believe natgas is priced in the 'go-range'. If you have yet to top off needs for fall, we have advised to have 80% of fall needs covered. Prices are still favorable so check local prices and consider catching up while natgas is in its current range.

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Regionally --

Anhydrous softened $10.15 to $771.94; UAN28 falls $11.79 week-over to $365.57; UAN32 firms $9.65 to $421.68; Urea falls $4.64 to $521.05.

DAP $2.04 lower to $596.72; MAP softens $7.25 to $623.80. Potash falls $5.34 to $550.53.

Farm diesel up slightly again, adding another 1/2 cent to $3.386 -- 12 1/2 cents below year-ago. LP 3 1/2 cents higher at $1.377 -- 10 3/4 cents above year-ago.

Nutrient/Fuel
7/29/13
8/5/13
Current Week
Week-over Change
Year-Ago
Anhydrous
$786.91
$782.09
$771.94
-$10.15
$798.45
DAP
$613.33
$598.76
$596.72
-$2.04
$648.25
MAP
$630.26
$631.05
$623.80
-$7.25
$653.83
Potash
$558.23
$555.87
$550.53
-$5.34
$607.42
UAN28
$387.22
$377.36
$365.57
-$11.79
$393.08
UAN32
$412.03
$421.68
$403.64
-$18.04
$407.38
Urea
$525.69
$521.05
$514.99
-$6.06
$631.25
Farm Diesel
$3.378
$3.38
$3.386
+$0.006
$3.42
LP
$1.34
$1.341
$1.377
+$0.036
$1.27
Composite
435.379
432.512
425.776
-6.74
460.483

Photo credit: D. Michaelsen, Inputs Monitor

 

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