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Fertilizer prices for the 2019 crop are running well above 2018 levels, with anhydrous ammonia about $80 per ton higher, DAP about $70 per ton higher and potash about $35 per ton higher. Based on these prices, the article estimates that corn costs will rise about $15 per acre and soybean costs about $5 per acre.
The increases end a string of yearly declines in fertilizer costs that began in 2012.
Higher nutrient costs raise the cost of production for US corn and soybeans, which can support new-crop prices and may shift acreage toward soybeans. Fertilizer producers' pricing power also strengthens.
proag.comJan 1, 2019After 66 past bullish report events, DAP moved a median 0.0% over 5 sessions (41% higher; middle half -0.6% to +0.7%), and +0.3% over 20.
Not enough comparable past events yet for a historical read.
After 1,040 past bullish report events, Corn moved a median +0.5% over 5 sessions (62% higher; middle half -0.9% to +2.0%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
