Some decent discounts made it into our advice alerts for this week, but pricing in Nebraska is too far below regional levels not to mention. The table below suggests now may be a good time to consider booking some anhydrous and DAP for fall.
If you are a urea user, we expect downside potential for urea as a Chinese export tariff window is set to open July 1. Hold on urea for now, and while UAN prices are below the regional average, we expect upside potential here based on late season sidedress. This could move prices higher near-term for solutions on hand-to-mouth demand.
| Nebraska Price 5/30/13 | Regional average | |
| Anhydrous | $789.09 | $870.70 |
| DAP | $630.00 | $634.06 |
| MAP | $651.41 | $652.11 |
| Potash | $620.55 | $580.79 |
| UAN28% | $375.36 | $401.84 |
| UAN32% | $429.79 | $441.19 |
| Urea | $568.18 | $562.45 |
| Farm Diesel | $3.29 | $3.423 |
| LP | $1.26 | $1.449 |
Farm diesel is very low this week at $3.29. Projections hold that farm diesel pricing will average $3.40/gallon in 2013 and prices have been in decline for several weeks now and a bottom may be in place in Nebraska. See today’s Monitor article, ‘Book Farm Diesel Effectively to Manage Price Risk’ for more.
LP is another bright spot in NE at $1.26. Here again, the price is well below the regional average and the expectation is for 2013 LP pricing to average $1.43.
We also like where natural gas is headed. Today saw declines in the July contract to $4.01. We have marked $3.91 as very strong support, and today’s natural gas report advises nattie buyers to watch for the market to move to that level. At that point, traders will flock to secure short positions and elevate pricing. This may be a narrow window, so stay advised on natural gas.
As always, check with your preferred local retailer as prices may vary.
