Inclement Cornbelt weather last fall prevented the typical fertilizer application, pushing that to this spring, when weather has still not cooperated for farmers. While there is plenty of fertilizer available for crops, logistical issues may push prices higher. Stu Ellis has our report from the farm.
Its not widely known, but ADM handles a lot of fertilizer to take advantage of its transportation fleet, and specialist Dale Jackson says 2019 supplies are adequate…
Global supply picture we have plenty of fertilizer. If you think back, we didn’t have much of a fall season in the US, so not much fertilizer got applied and therefore we have plenty of fertilizer in the US. globally, kind of the same story, plenty of fertilizer. There’s some additional facilities coming on line overseas. So going forward we see the global supply, at least in the potash market, strong. Phosphate, a little different story, simply because we’ve seen some backwardation in that market, enough for some facilities to cut production.
But in nitrogen, Spring weather will impact alternatives
I’ll talk Midwest interior values. For nitrogen I think we’re going to see an increase in urea and UAN, reason being, we’re very concerned here at ADM about anhydrous ammonia application, and as guys want to get rolling with this late spring and anhydrous is a little slower mechanism of applying your nitrogen, we see a lot of tons and have seen a lot of tons switch from anhydrous to urea and UAN. So we see those two products increasing in price as we get into spring.
That’s our report from the farm, I’m stu Ellis with WCIA 3 your local news leader