Prices of fertilizer continue to trend upward

Feb 15, 2022

Prices of fertilizer continue to trend upward, but we are seeing a slow down in the rate of increase. China has decided to shut down or limit urea factories to help clear up the air before the upcoming Winter Olympics. There is also some concern if Russia, Trinidad, and Tobago implement tariffs on nitrogen exports to the US. The National corn Growers Association is pushing for CF Industries to back off the dispute causing the problem between the US and Russia.

The USDA left US corn yields unchanged at 177. Planted acres and harvested acres both increased changing total production. Planted acres increased 100,000 acres but harvested acres increased 300,000 acres. Total US production increased to 15.115 billion bushels. Feed/residual was unchanged at 5.65 billion bushels. Ethanol use increased by 75 million bushels to at 5.325 billion bushels. Exports were down 75 million bushels cancelling the extra ethanol usage. Food and seed usage increased 80 million bushels. Total US carryout numbers increased 47 million, from 1.493 billion bushels to 1.540 billion bushels. The average trade estimate before the report was a drop in carryout of 20 million bushels.