Alberta retail prices for nitrogen fertilizer have been steadily increasing so far in 2021.
‘For Alberta producers it is a little early to be too concerned with fertilizer prices as the majority of applications occur during the spring planting season,’ explains Ryan Furtas, market analyst with Alberta Agriculture and Forestry. ‘However, fertilizer pre buy is always an option and in some instances, especially for urea, it can be taken home at any time.’
Comparing the cost per pound of ‘actual’ nitrogen, shows July urea at 60 cents per pound as the highest price in the past 5 years, 3 cents more than the May 2019 price of 57 cents per pound. For anhydrous, the July price of 53 cents per pound surpasses the previous 5-year high of 51 cents per pound in June 2017.
The Alberta urea price during the spring season averaged 58 cents per pound, whereas the summer price has increased to 60 cents per pound. For anhydrous, the spring price averaged 50 cents per pound, while the summer price has increased to 53 cents per pound.
Figure 1. Alberta retail price per pound of ‘actual’ nitrogen
Agriculture and Forestry Farm Input Prices
‘The nature of fertilizer pricing is such that the retail nitrogen price increase during the spring application season did not fully reflect replacement values,’ explains Furtas. ‘Global demand for fertilizer remains very strong due to expanded acres of production and incentive to obtain higher yields and optimize on high agriculture commodity prices.’
Furtas adds producers are likely to experience higher prices for 2022 as higher production and transportation costs are firmly entrenched.
‘Until recently, nitrogen prices in Alberta appear to have been relatively insulated from global price trends. As long as agriculture and energy commodities remain at elevated values, higher fertilizer prices will remain or move higher,’ says Furtas.
Source : alberta