Retailers throughout the Midwest report the annual winter resupply has begun. Many downstream purchasers have been waiting out the market to find the right time to fill needs for the spring application season, and reports of resupply are streaming in. This indicates that at the downstream level, current pricing is at-or-near the sweet spot for this year.
Urea has been an early standout, while anhydrous has purchasers continuing to wait for pricing on NH3 to come down. Pricing for Urea may increase its popularity in the coming application season and while anhydrous is the long-standing N of choice in the Midwest, NH3 pricing may threaten P&K application rates and favor increased Urea application as a result. Currently NH3 is priced at $877.58. that is lower over the past few weeks, but Urea currently goes for 28 cents per pound while Anhydrous hovers at 43 cents per pound.
Potash is the clear wallflower in this dance hall. Phosphate pricing has eased just enough on increased production and waning exports to inspire late December and January purchases downstream, but the industry is well aware of the massive Potash inventory in Saskatchewan and expects K pricing to ease even further.
Those retailers that have resupplied report product is moving, and growers are anxious to get the spring application season underway.
