WEEKLY FERTLIZER REVIEW: Fertilizer Prices Collapse to Multi-Year Lows

Question is can farmers get access to lower cost product.

It's hard to be shocked by anything that happens in the markets these days, but the fertilizer industry was set back on its heels this week by news of a severe drop in ammonia prices. A major player in the international trade reportedly sold anhydrous for just $113 a ton in Tampa, with prices even lower out of the Black Sea. That represents a drop of more than $200 a ton in just one week, as the global financial crisis continues to limit trade.

The latest deal would translate into a farm-gate price of around $300 a ton, according to historical trends. But whether farmers will be able to get access to the product remains highly uncertain, because supplies around the Midwest are still stuck with inventory bought at record prices this fall. As late as last week dealers were still quoting ammonia above $1100 a ton in Illinois, according to USDA.

It's unclear how long the latest break will last, however.

To read Bryce Knorr's complete weekly fertilizer review, click HERE.

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