Fuel and Fertilizer Prices Remain Volatile

The last time we reported on the cost of fertilizer and diesel, we reported that even while diesel prices were decreasing, the cost of fertilizer continued its upward trend. As diesel prices continue to fall following oil price declines, fertilizer prices have leveled off and in some cases begun to decrease.

The US average price of On-Highway diesel, as reported by the Energy Information Administration, was $3.288 per gallon on October 27, 2008 http://tonto.eia.doe.gov/oog/info/wohdp/diesel.asp . This is a decrease of 10% from two weeks ago and a 21% decrease from 6 months ago.

Fertilizer prices, in general, have leveled off. As of 10/21/2008, NH3 was $1170 per ton, which is down 3.44% from two weeks ago ($1212 per ton), but up 23% from three months ago ($1053 per ton). UAN is down 2% from two weeks ago, from $492 to $482.75 per ton. Urea decreased the most among nitrogen fertilizer, falling from $827.75 to $572.5 per ton in a two week period. This is a decrease of nearly 31%. This new price of Urea is 22.19% lower than it was 3 months ago.

MAP and DAP as of 10/21/2008 were both decreasing, but have not dropped below the $1000 per ton mark. MAP went from $1225 to $1120 per ton in the last two weeks, while DAP decreased from $1218 to $1172 per ton. These are decreases of 8.75% and 3.80% respectively.

As of 10/21/2008 Potash and 10-34-0 have not followed this trend. According to our survey, the average price of Potash is $934 per ton. This is up 6.59% from two weeks ago. Likewise, 10-34-0 has increased from $1037.5 to $1110 per ton, an increase of 6.99%.

As of 10/27/2008:

On-Highway Diesel – $3.288 per gallon

As of 10/21/2008:

NH3 – $1170/ton or $0.713/lb
UAN – $482/ton or $0.861/lb
UAN-Direct to farm – $449/ton or $0.802/lb
Urea – $572.5/ton or $0.622/lb
MAP – $1120/ton or $1.0769/lb
DAP – $1172/ton or $1.2739/lb
Potash – $934/ton or $0.778/lb
10-34-0 – $1110/ton or $1.632/lb

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