Fertilizer industry experts are keeping a close eye on nitrogen prices as farmers prepare for spring planting.
Throughout the winter months, prices for key nitrogen sources have remained a major topic of discussion. But as spring approaches, one big question remains—how much nitrogen will farmers actually need?
Josh Linville, vice president of fertilizer for StoneX says that answer depends heavily on corn. “We keep building this corn crop. It keeps getting to be a bigger number being discussed by the marketplace, and that builds nitrogen demand overall. So, that has just continued to provide more and more price strength to the urea market.”
Right now, many farmers are focusing on anhydrous ammonia, one of the most widely used and often most economical nitrogen sources. Increased interest in anhydrous could eventually put upward pressure on prices, especially if demand accelerates quickly.
Linville says, “Anhydrous is still the cheapest form of nitrogen out there to the farmer, and if they get the chance, I think you’re gonna see them pile onto it. That’s gonna have some impact on the anhydrous price, of course, but you could start stealing some demand away from things like urea and UAN if this continues.”
Industry analysts say fertilizer availability is currently adequate, but the situation could change depending on farmer decisions and global market conditions.
“It’s NOLA-based because that’s kind of our base point for North American fertilizers. And since the first half of December, when urea prices dipped to their lowest level, prices have been up over $100 a ton since that point in time, and a lot of that continues to be driven globally.”
As planting season draws closer, nitrogen prices, and corn acreage, will be key factors shaping spring input costs on the farm.
