Nutrient and fuels were generally lower throughout the report week, but LP threw a fit as air conditioning and power generation whittle away at the national supply. DAP and Urea moved higher as well, but both remain well below year-ago.
Decliners tallied $6.51 to gains’ $6.28.
A round of resupply has begun at some major suppliers and fresh pricing points have been set in those locations. Other locations are anxious to move what product they have left and have priced accordingly.
Futures --
December corn futures contract opened today at $5.02 and continues to spin its wheels. Apathy rules attitudes regarding the December contract and without some strength here, we see little upside potential for nutrient. However, wholesale movements suggest urea and solutions may have hit bottom. We expect fertilizer pricing to wobble at current levels, adding a few dollars one week and shedding a few the next. But an inspired rally in corn could influence nutrient pricing higher. Keep an eye on corn futures and start thinking about fall expenditures within different corn pricing scenarios. Last week’s blog is about booking inputs with Dec corn at a low, and will help you with some perspective.
Front-month natural gas futures opened today at $3.75 and fell a quick 13 cents. A break in the heat across the Corn Belt suggests weakening demand in the week ahead, and although last week’s additions to storage were only half that of the week before, the August contract is only 1.2% below the five-year average supply. The chart patterns look a lot like those we saw during the winter, and if traders regain confidence in natgas, we should see the telltale signature of a trader driven contract.
Resistance is still at $3.91 while virulent support rests at $3.61. This is a range that has attracted trader activity in the past and elevated natgas pricing.
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Regionally --
Anhydrous softened $0.80 to $847.97; UAN28 falls $1.55 week-over to $394.44; UAN32 $0.48 softer at $435.49.
Urea firmed $3.16 to $547.51.
DAP $2.97 higher to $627.42; MAP down $3.36 to $642.51. Potash falls $0.32 to $575.97.
Farm diesel up slightly, adding $0.004 to $3.359 -- 19 cents above year-ago. LP firmed 15 cents to $1.499 -- 24 1/2 cents above year-ago.
| Nutrient/Fuel | 7/8/13 | 7/15/13 | Current Week | Week-over Change | Previous Year |
| Anhydrous | $853.66 | $848.77 | $847.97 | -$0.80 | $800.36 |
| DAP | $627.15 | $624.45 | $627.42 | +$2.97 | $646.18 |
| MAP | $647.42 | $645.87 | $642.51 | -$3.36 | $650.18 |
| Potash | $578.95 | $576.29 | $575.97 | -$0.32 | $622.55 |
| UAN28 | $397.21 | $395.99 | $394.44 | -$1.55 | $400.27 |
| UAN32 | $439.32 | $435.97 | $435.49 | -$0.48 | $502.85 |
| Urea | $549.14 | $544.35 | $547.51 | +$3.16 | $684.00 |
| Farm Diesel | $3.361 | $3.355 | $3.359 | +$0.004 | $3.17 |
| LP | $1.365 | $1.346 | $1.499 | +$0.15 | $1.25 |
| Composite | 455.288 | 452.935 | 452.910 | -$0.02 | 478.978 |
Photo credit: D. Michaelsen, Inputs Monitor
