2020 Fertilizer Market Update

CN Update, week of February 17^th 2020 by Dustin Jackson Northern Territory GM

This past week the NWS came out with it’s long range flood outlook, and there is certainly cause for concern in all the major river basins.  One positive, with less frost in the ground, we are hearing water levels actually going down in the fields in our area – hopefully this trend continues.  Still, look for transportation problems, from early load restrictions to high water river unloading issues.  We could very well be looking at a season similar to last year regarding logistics.  We have positioned more product than ever prior to spring to help mediate the potential supply hiccups.
On the market side, urea and phosphates are currently showing some strength.  USDA current estimates of near 95M corn acres has the market concerned with nitrogen supply.  Phosphates have bounced off the lows and starting to creep higher.  The last couple years the country has taken off record yields in all crops, and P replacement has not held its ground; look for increased demand this spring and continued strength in prices.  All being said, phosphates are at 10 year lows for values, it’s a GREAT time to amend those fields that have been neglected the last couple years.
UAN is currently at a tremendous value to urea historically if you have the ability to apply liquid N – with ample, ready supplies.
With corn still in the field and market conditions not providing huge opportunities to date, it’s easy to postpone planning for the upcoming season.  Know that when you are ready to make those decisions, our agronomists are here to help you sort through your fertility needs.   We appreciate the opportunity to earn your business – thanks.

This article is an opinion on nutrient markets and is not a base used to make trading decisons.  Allied Companies is not liable for trading decisions made based on the above article.