April 05, 2012 at 2:55 pm
Category: Product News

This morning we received a revealing market update from a key fertilizer supplier on raw material pricing.  In an effort to help our customers plan future pricing, we would like to pass this information on to you today.

Right now Urea pricing in the words of our suppliers is “out of control.”  Phosphates are currently at $450 a ton and holding steady, Potash is at $450 a ton and is also holding steady, and yesterday, Urea was selling at $720 a ton.  All prices mentioned are on a barge in New Orleans, LA.  They do not include shipping prices and bagging prices, nor do they include blending charges and shipping charges to distributors.  With the additional charges I mentioned plus profit margins for the formulator and distributor, the landed cost of Urea will be close to 2008 pricing.  The listing of Urea by week shown below indicates a 52% increase over the past two months:

2/17 – $400.00/ ton
2/24 – $422.00/ ton
3/02 – $490.00/ ton
3/09 – $502.00/ ton
3/16 – $545.00/ ton
3/23 – $590.00/ ton
4/02 – $610.00/ ton
4/04 – $720.00/ ton

Fortunately, prices are expected to recede moderately after the spring planting season.  In the mean time, you can be sure ATS is doing all we can to purchasing products as reasonably as possible.  We have a limited stock of fertilizers we purchased early.  However, when we run out of this supply replacement costs will be priced according to these increased prices.

Our message to you is: “Buy what you need early if you want to save money!”

Dan Dunham
T&O Sales Rep and Founding Partner