December 29, 2008
ASA weekly: Wholesale US fertiliser prices drop
After climbing continuously for six years, US wholesale fertiliser prices are seeing a downturn due to drops in commodity prices and natural gas, the primary ingredient to make fertilisers.
That is according to a report by the American Farm Bureau Federation (AFBF).
Wholesale prices for fertiliser is plummeting with retail prices yet to fall because soy, corn and other commodities prices have fallen 50 percent or more from summer highs.
According to AFBF Senior Economist Terry Francl, the wholesale fertiliser price drop began about two months ago, after the time farmers applied fall fertiliser to their crops.
According to the report, wholesale prices for anhydrous ammonia in the Corn Belt have declined from the US$1,000 per-tonne-plus range to the US$500 range. Urea has dropped from the mid-US$800 range to the mid-US$300 range. Diammonium phosphate has declined from US$1,100 to US$600 per tonne. The decline in potash prices has been less significant, dropping from a little more than US$900 per tonne to slightly over US$800.
Francl said besides a fall in commodities prices, the drop in natural gas prices also accounted for the decline in wholesale fertiliser prices. Natural gas prices have declined from more than US$11 per million BTUs (1,000 cubic feet) to around $6 per million BTUs. Natural gas takes up 80 percent to 90 percent of the input cost of manufacturing anhydrous ammonia.
|
U.S. & South America Soybean/Products Balance | |||||||||
|
　 |
United States |
Argentina |
Brazil | ||||||
|
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. |
Actual |
Estimate |
Proj. | |
|
2006/07 |
2007/08 |
2008/09 |
2006/07 |
2007/08 |
2008/09 |
2006/07 |
2007/08 |
2008/09 | |
|
Soybeans |
thousand tonnes | ||||||||
|
Carryin |
12,229 |
15,617 |
5,580 |
334 |
1,876 |
945 |
2,252 |
3,110 |
3,830 |
|
Production |
86,770 |
72,824 |
79,486 |
48,800 |
46,200 |
50,500 |
59,000 |
61,000 |
59,000 |
|
Imports |
246 |
269 |
191 |
2,336 |
3,025 |
2,700 |
108 |
100 |
150 |
|
Crush |
49,198 |
49,024 |
46,675 |
35,962 |
35,180 |
36,700 |
31,511 |
31,955 |
31,500 |
|
Exports |
30,428 |
31,598 |
28,576 |
12,132 |
13,400 |
14,900 |
23,805 |
25,450 |
25,000 |
|
Other |
4,002 |
2,508 |
4,422 |
1,500 |
1,576 |
1,600 |
2,934 |
2,975 |
3,025 |
|
Usage |
83,628 |
83,130 |
79,673 |
49,594 |
50,156 |
53,200 |
58,250 |
60,380 |
59,525 |
|
Carryout |
15,617 |
5,580 |
5,584 |
1,876 |
945 |
945 |
3,110 |
3,830 |
3,455 |
|
Soymeal |
thousand tonnes | ||||||||
|
Carryin |
285 |
314 |
267 |
2,003 |
1,144 |
1,200 |
863 |
1,563 |
1,878 |
|
Production |
39,058 |
38,322 |
36,959 |
27,856 |
27,607 |
28,700 |
24,420 |
24,760 |
24,410 |
|
Domestic use |
31,184 |
30,078 |
29,484 |
619 |
634 |
660 |
11,520 |
12,180 |
12,600 |
|
Net Exports |
7,845 |
8,291 |
7,470 |
28,096 |
26,917 |
28,013 |
12,200 |
12,265 |
12,075 |
|
Usage |
39,029 |
38,369 |
36,954 |
28,715 |
27,551 |
28,673 |
23,720 |
24,445 |
24,675 |
|
Carryout |
314 |
267 |
272 |
1,144 |
1,200 |
1,227 |
1,563 |
1,878 |
1,613 |
|
Soybean oil |
thousand tonnes | ||||||||
|
Carryin |
1,365 |
1,399 |
1,126 |
487 |
310 |
301 |
300 |
341 |
406 |
|
Production |
9,294 |
9,329 |
8,868 |
6,917 |
6,709 |
7,017 |
6,050 |
6,130 |
6,040 |
|
Domestic use |
8,420 |
8,313 |
8,165 |
580 |
1,045 |
1,167 |
3,550 |
3,895 |
3,998 |
|
Net exports |
840 |
1,289 |
907 |
6,514 |
5,673 |
5,800 |
2,459 |
2,170 |
2,050 |
|
Usage |
9,260 |
9,602 |
9,072 |
7,094 |
6,718 |
6,967 |
6,009 |
6,065 |
6,048 |
|
Carryout |
1,399 |
1,126 |
922 |
310 |
301 |
351 |
341 |
406 |
398 |
|
USDA Export Sales (tmt) - Week of 18 December 2008 | ||||||||
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
Country |
Commodity |
New Sales |
Accum. Exports |
|
|
Soy |
7.80 |
82.80 |
|
|
Soymeal |
9.90 |
34.30 |
|
|
Soy |
374.30 |
7623.80 |
|
|
Soymeal |
33.30 |
361.00 |
|
|
Soy |
12.90 |
50.40 |
|
|
Soymeal |
3.80 |
46.40 |
|
|
Soy |
60.00 |
142.10 |
|
|
Soymeal |
16.60 |
38.40 |
|
|
Soy |
114.60 |
312.60 |
|
|
Soymeal |
23.00 |
152.50 |
|
Korea, Rep. |
Soy |
58.30 |
123.80 |
|
|
Soyoil |
2.20 |
8.20 |
|
|
Soy |
12.40 |
856.80 |
|
|
Soyoil |
0.60 |
7.20 |
|
|
Soy |
129.80 |
558.90 |
|
|
|
|
|
|
|
Soy |
11.30 |
213.80 |
|
|
|
|
|
|
|
Soy |
59.60 |
640.50 |
|
Export Sales Totals (tmt) | |||
|
|
Soymeal |
16.20 |
234.20 |
|
Commodity |
Outstanding Sales |
Accum. Exports |
New Sales |
|
|
Soymeal |
7.70 |
38.80 |
|
Soybeans |
7,260.90 |
125,580.50 |
584.80 |
|
Dom. Rep. |
Soymeal |
15.70 |
74.40 |
|
Soymeal |
1,409.70 |
1,649.00 |
145.70 |
|
|
Soymeal |
12.00 |
64.40 |
|
Soyoil |
107.80 |
106.20 |
5.50 |
