Weekly, your Valley Agronomics team sends out timely, market supply updates through our Grower Portal. Check out this week’s update from Larry Lankford our expert on the fertilizer market.
Crop Nutrition Supply Update
By Larry Lankford, Procurement Manager, Valley Agronomics
Summer is in full swing as we roll into July. Farms regionwide are behind on most crops, but mother nature is working overtime to catch up. The first cutting of hay is harvested across the geography. Fertilizer is being applied to potatoes and other crops. Winter wheat and barley are starting to show signs of ripening, and the water is being turned off in some areas. Cherries have been harvested in Washington. Oregon is getting ready for the grass seed harvest. Overall, things look pretty good.
Yet, fertilizer markets remain unsettled.
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Nitrogen is unsteady as there are imports of urea coming to the US. Urea continues to trade at a significant discount to UAN. We expect that there will be a fill program announced at some point this month for UAN.
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Anhydrous is softening, and ammonium sulfate appears to be seeing some price relief. Suppliers still have product in barns that they are working through. The product bought now will be for spring of 2023.Increased interest costs and not using the product for 8 or 9 months will make it challenging for suppliers to purchase too far ahead.
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Phosphate remains high as supply continues to be tight as the countervailing duties have kept most international tons out of the US. Even with fall being the typical time for phosphate applications, we saw a weaker than average application this spring. The question is, will applications be lighter because of the price? It will be something we are looking closely at this fall.
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Potash is still at or higher than spring. Supplies are tight, and logistics continue to be a challenge. Growers also used less potash this past spring. Will the trend continue for fall? It’s something we are trying to predict
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Sulfur is seeing some price relief but remains high, but the supply seems to be catching up. Sulfuric acid is tight. One supplier sold out through the first of the year. Agriculture competes with many other industries for sulfuric acid, and because we are seasonal purchasers, we are often the last ones to the table. Other industries take products monthly, giving them the first chance at the supply.
Optimism in agriculture
Despite these procurement challenges, the Ag industry remains optimistic. The crops look great, and prices are strong. With a little more help from mother nature, we will harvest a crop that can continue to feed the world. We at Valley Agronomics are committed to helping our growers and member-owners be as successful as possible.
We look forward to working with you.
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