Select Nitrogen Fertilizer Prices, Anhydrous Ammonia, Urea, Liquid (28%). Figure 2. ProAg and USDA are an equal opportunity provider and employer. The urea price, adjusted for the relative nitrogen content, must reflect a sufficient margin above the ammonia price to cover the cash cost of upgrading the ammonia. Annual Estimated Corn Fertilizer Expense (180-70-70), IL Spring Prices (Avg. Estimated price was $185 per ton below the actual price in 2014, $203 per ton in 2015, and $103 per ton in 2016. Of course, many factors have changed since 2012 and 2013; expanded U.S. fertilizer production and lower energy prices being key. The main application of Ammonia is in nitrogen fertilizers, followed by the synthesis of nitric acid. Anhydrous Ammonia. This compares to our 5-year average of 599.01 for this week. A slowdown in global production combined with increasing demand in East Europe resulted in an upward price shift. The costs savings for anhydrous ammonia then is $10.36 per acre. Illinois Production Cost Report (Bi-weekly) Production costs items state wide: cash prices bulk, FOB distributor, per ton unless otherwise stated. The insurance products described by Producers Ag Insurance Group® and its subsidiaries (“ProAg®”) may not be a complete list of all products offered and may not be offered in all states. ProAg is an equal opportunity provider. In recent weeks, the price ratio reached an average of 1.39 in September, meaning urea prices are historically high relative to anhydrous ammonia. Furthermore, current prices reflect the lowest fertilizer expense observed in more than a decade. Global ammonia prices weakened in May as the market continued to suffer from oversupply. In 2020, this example fertilizer rate would cost $95 per acre, a $20 per acre reduction from 2019 spring prices (-17.6%). Producers should also consider the relative cost of various nitrogen sources. Ammonia prices fell almost 34% from $475 per metric ton during the same week a year ago. Potash prices reached lows of $300 per ton in 2016. Rural Broadband Access Expanding; Major Gaps Remain, second-largest corn crop in modern history, Lower fertilizer expenses for corn production also limited soybeans’ appeal. Our Nutrient Composite Index (NCI) firmed 2.10 points this week to 530.28. Figure 4 shows how significantly fertilizer prices have adjusted during the farm economy slow-down. So far, anhydrous ammonia prices are close to $80 per ton higher for 2019 production as compared to 2018 production. Longer-term, nitrogen fertilizer production capabilities mayl be increased, leading to downward pressure on nitrogen prices. With fieldwork and spring planting getting underway, lower fertilizer prices are a welcome improvement. Liquid (28%) Fertilizer (Two rates of each)-Corn Mick Minchow Private Industry Cooperator: Mike Williams-OBJECTIVE: To determine and document the profitability of anhydrous ammonia fertilizer versus Liquid (28 %) fertilizer at two application rates. Of course, not all nitrogen prices are equal. While demand from India increased at a … Data Source: USDA AMS and aei.ag Calculations. Anhy-drous ammonia price advantages can vary but the average difference is about $0.12 per pound of N over the cost of urea. Since 2015, anhydrous ammonia prices have ranged from a higher of more than $700 per ton to a low of $400 per ton. Anhydrous ammonia, which peaked at nearly $900 per ton in 2013, has spent considerable time in recent years around the current levels ($500 per ton). For this, we assumed the nitrogen source was anhydrous ammonia. As a result of anhydrous ammonia prices falling sharply in recent weeks, urea and 28% prices are historically high relatively to anhydrous. A lot of bizarre things have and will occur in 2020. Pricing information. In those years, the estimated prices were below actual prices. Winter Solstice Weather Outlook: Moisture Headed to the Southern Plains? Select Fertilizer Prices, Anhydrous Ammonia, DAP, Potash. Potash prices, for example, climbed from $300 per ton to nearly $400 per ton in 2019. – also impact producers’ decisions on which source to use. Anhydrous ammonia has a clear cost per unit advantage when considering only the nitrogen. Reported Illinois Farm Diesel Fuel Price, Jan. 2010 – Mar. Urea’s relative price (in blue) is an average of 1.22. In most cases, fertilizer prices are at or near their lowest levels in more than a decade. The increase from $400 per ton last fall to more than $500 per ton most recently is roughly a 25% increase ($100 increase on $400 per ton). Learn more about this ‘A++’ (Superior) Ranked Insurer. Fertilizer outlook Ammonia prices recovered last month, especially in Europe. Anhydrous ammonia was the sole decliner in our 12-state survey this week. USDA data shows anhydrous ammonia prices in Illinois went from $500 per ton to $600 per ton at the beginning of 2019. We use cookies to provide you with the best experience and functionality on our website. Furthermore, corn production in 2012 and 2013 was being pulled by strong usage and higher prices (here and here). Jan. 2015 – Sept. 2019. In recent weeks, fertilizer prices have sharply declined. Previously, the low of $97 per acre was observed in 2017. For a fertilizer application of 180-70-70, lower prices equate to a $20 per acre savings over spring 2019 prices. USDA is an equal opportunity provider and employer. Most recently, the average September prices were an expense of $99 per acre. Downstream fertilizer demand and consumption by chemicals users is expected to remain steady for the remainder of the year. Ammonia prices fell primarily due to lower natural gas costs. We hope you will continue the conversation with us on Twitter and Facebook. Figure 2. Anhydrous ammonia hit its low of $400 per ton in late 2017. Figure 4. In September, the price ratio was 1.54, above the long-run average of 1.36. More information on our cookies. Anhydrous ammonia is a highly effective fertilizer that helps farmers feed our growing population and replenish nutrients in the soil. Compared to last spring, reported farm diesel prices are 71 cents per gallon lower, or down 27%. Settings for cookies can be changed at any time within your browser. Product Offer Average Change Anhydrous ammonia 400.00-552.00 475.58 UP 25.08 Urea 46-0-0 350.00-375.00 365.00 UNCH Liquid Nitrogen 28% spread 192.00-245.00 221.93 UP 3.43 DAP(Diammonium … Anhydrous ammonia prices are currently around $850 per ton, with uncertainty about prices in the spring of 2013. Emerging spot interest from Turkey and China has not influenced prices. Anhydrous prices increased 6%, or $29/ton, from last month, with retail prices averaging $517/ton. Anhydrous Ammonia Fertilizer vs. While anhydrous ammonia is the highest price per ton, when we look at the Price/lb Nitrogen graph, you can see that anhydrous ammonia remains the cheapest price per pound of nitrogen. Urea prices increased m/m, particularly in the US Gulf, due to a decrease in Chinese exports and steady demand from India. Figure 1. Anhydrous ammonia, which peaked at nearly $900 per ton in 2013, has spent considerable time in recent years around the current levels ($500 per ton). Data Source: USDA AMS. Lower fertilizer expenses for corn production also limited soybeans’ appeal in 2020. In recent weeks, however, prices have moderated as the expense of a 180-70-70 rate has fallen more than $20 per ace. “From 2010 to 2019, global phosphate production has increased 11 million tons per year, from 60 million to 71 tons per year,” McLellan says. Anhydrous ammonia prices, for example, are currently around $500 per ton, but were closer to $600 per ton last year. Cattle on Feed Catch Up to 2019; Likely to Tighten in 2021, Prepare for Surging Feed Costs in 2021 — Economist, Holiday Wishes from the ProAg Team to Yours. In 2019, the spring price equated to an expense of $120 per acre – the highest since 2015 but well below 2011-2013 levels. Anhydrous ammonia has several advantages, including its relatively easy application and ready availability. Date HS Code Description Origin Country Port of Discharge Unit Quantity Value (INR) Per Unit (INR) Nov 21 2016: 28141000: FULLY REFRIGERATED ANHYDROUS LIQUID AMMONIA [GOODS IMP BY USFOR MFG OF FERTILIZER) Fertilizer prices were mostly higher with the single exception of anhydrous ammonia. of April – May) and Fall 2019. First, the relative prices shown in Figure 3 only consider the price of the product. Second, the price ratios can adjust in two ways: anhydrous price could increase, or urea and 28% prices could decline. Our products. ICIS offers reports on over 180 commodities across the global petrochemical, energy and fertilizer markets. Anhydrous Ammonia: Anhydrous prices have hovered around $504.5/ton in Illinois in recent weeks. 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