Inputs Monitor Regional Index: Temperatures Dive, Fertilizer Dips

January 6, 2014 03:51 AM

Declines tallied $28.42 to gains' 8 cents in the regional averages. This first full week of 2014 begins with bitter cold temperatures, and headline making weather across the Eastern Corn Belt. I am currently in Minneapolis, MN where the temp is around -20F. Nutrient prices continued to fall in regionwide averages with everything lower on the week with the exception of urea moving 7 cents higher and LP up another penny.

Meanwhile, the December 14 corn contract is finding a little strength opening today at $4.52.

Farm diesel is coming around and we are watching downside action unfold as 2014 opens. Indiana farm diesel pricing is still below LP pricing in that state, due largely to increases in propane pricing. But Indiana farm diesel wears a $2 handle. We may decide to pull the trigger on farm diesel coverage this week, but if Ruby Red wants to trail, we are more than happy to wait on the setback.

Corn Futures --

December 14 corn futures opened today at $4.52 putting expected new-crop revenue at $683.20. With anhydrous priced at $650.52, the ZCZ/NH3 spread lies at -32.68. With corn futures moving higher and nutrient moving lower, fertilizer prices may be coiling to spring higher in the near-term. However, the annual runup in pricing is long overdue. This has been an uncharacteristic year for fertilizer pricing, and nutrient has bucked the trend of December increases.

Corn futures continue to limit strength in nutrient pricing and as the December contract remains range-bound, fertilizer has adopted the trend.


Regionally --

Anhydrous falls $4.27 to $650.52; UAN28 $4.71 lower week-over to $315.04; UAN32 falls $2.13 to $345.93; Urea 7 cents higher to $455.81.

DAP $6.76 lower to $503.42; MAP $9.54 lower to $530.42. Potash falls $1.00 to $473.43.

Farm diesel softens 1/2 cent to $3.33 -- 16 cents below year-ago. LP firmed a penny to $2.01 1/4 -- now 57 cents above year-ago.

Week-over Change
Current Week
+ 7 cents
Farm Diesel
- 1/2 cents
$1.92 1/2
$2.00 1/4
+ 1 cent






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