By Russ Quinn
DTN Staff Reporter

OMAHA (DTN) -- Retail fertilizer prices are continuing to hold steady, according to data tracked by DTN for the second week of May 2013. Retailers expected some price movements in different forms of nitrogen, but that has yet to emerge.

Six of the eight major fertilizers were lower compared to last month, but these moves to the low side were fairly slight. DAP had average price of $613 per ton, MAP $655/ton, potash $582/ton, urea $568/ton, anhydrous $846/ton and UAN28 $400/ton.

The remaining two fertilizers were higher compared to the second week of April, but again the move higher was extremely negligible. 10-34-0 had an average price of $613/ton and UAN32 $449/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.62/lb.N, anhydrous $0.52/lb.N, UAN28 $0.71/lb.N and UAN32 $0.70/lb.N.

Rabobank International Food & Agribusiness Research and Advisory (FAR) group reported late last week that cool and wet weather in much of the Midwest has delayed the normal cycle of fertilizer restocking, which could bring uncertainty to the 2013 second-quarter fertilizer markets. The report added that the pace of fertilizer demand is now increasing and a pick-up in global trading activity is expected.

"Across most regions, a financial incentive to maximize production is driving a large planting, which will lead to a predominately neutral price outlook," Sterling Liddell, senior vice present with the FAR group, said in a press release. "However, there are some uncertainties regarding policy, which will ultimately impact market sentiment. As a result, buyers will be cautious, but eventually, global purchasers will need to lock in fertilizer supply contracts."

Rabobank reported global urea prices have started to wane because of the delayed field work combined with oversupply. The Rabobank outlook for urea in Q2 2013 is neutral to negative.

Phosphate prices are expected to increase slightly, with various factors limiting demand, according to the report. U.S. farmers applied significant amounts of MAP/DAP in the fall 2012, which will result in lower demand this spring. In addition, several years of strong commodity prices have pushed farmers to restore P levels in their soils.

Lower international potash prices are directly related to the renegotiation of new supply contracts with importers in China and India. Farmers in India are willing to reduce potash applications because of high prices, but demand is expected to increase in South America and parts of Asia, the reported stated.

Only one of the eight major fertilizers is showing a price increase compared to one year earlier. Anhydrous is now 11% higher compared to last year.

Four fertilizers are a single digit lower in price compared to May 2012. DAP is 4% lower, MAP is down 5%, UAN28 is 7% less expensive and UAN32 is 9% lower compared to last year.

The remaining three fertilizers are now down double digits from a year ago. Potash is now down 12% while 10-34-0 is 22% less expensive and urea is 25% lower.

DTN collects roughly 1,600 retail fertilizer bids from 330 retailer locations weekly. Not all fertilizer prices change each week. Prices are subject to change at any time.

DTN Pro Grains subscribers can find current retail fertilizer price in the DTN Fertilizer Index on the Fertilizer page under Farm Business.

Retail fertilizer charts dating back to November 2008 are available in the DTN fertilizer segment. The charts included cost of N/lb., DAP, MAP, potash, urea, 10-34-0, anhydrous, UAN28 and UAN32.

DTN's average of retail fertilizer prices from the second week of the month ($ per ton).

DRY
Date Range	DAP	MAP	POTASH	UREA
May 14-18 2012	638.68	689.37	664.91	760.76
June 11-15 2012	634.20	675.84	653.06	739.02
July 9-13 2012	633.98	662.83	647.29	680.47
Aug 13-17 2012	632.20	665.20	626.14	614.96
Sep 10-14 2012	630.81	670.50	621.01	605.20
Oct 8-12 2012	636.58	674.25	617.68	595.25
Nov 12-16 2012	640.24	679.36	617.75	587.44
Dec 10-14 2012	639.24	675.67	613.49	574.71
Jan 14-18 2013	621.87	665.88	597.58	575.85
Feb 11-15 2013	621.87	665.88	597.58	575.85
Mar 11-15 2013	615.54	663.81	590.23	574.81
Apr 8-13 2013	616.35	660.35	588.01	573.48
May 13-17 2013	612.79	654.64	582.25	567.85
LIQUID
Date Range	10-34-0	ANHYD	UAN28	UAN32
May 14-18 2012	781.68	760.06	431.85	491.27
June 11-15 2012	715.10	772.38	426.94	477.48
July 9-13 2012	694.76	762.34	395.59	454.35
Aug 13-17 2012	631.70	811.29	387.11	423.33
Sep 10-14 2012	630.93	832.47	386.49	426.57
Oct 8-12 2012	614.09	850.18	378.78	421.77
Nov 12-16 2012	617.48	858.15	380.10	421.86
Dec 10-14 2012	601.72	876.79	368.64	417.81
Jan 14-18 2013	610.46	861.78	382.38	434.68
Feb 11-15 2013	610.46	861.78	382.38	434.68
Mar 11-15 2013	611.54	862.09	394.76	442.46
Apr 8-13 2013	611.33	855.27	401.98	446.88
May 13-17 2013	613.29	846.46	399.77	449.20

Russ Quinn can be reached at russ.quinn@telventdtn.com

(MZT/AG)

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