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ANHYDROUS AMMONIA PRICES CLIMB 8%, NEARS $900/TON
BrownfieldAgNews reports:

The price of anhydrous ammonia fertilizer has been climbing steadily since last fall. USDA Ag Market News in Illinois put the average price at $887 per ton on January 3rd.

Purdue University farm business management specialist Alan Miller says it's simply a matter of supply and demand, with corn acres expected to increase worldwide.

"We continue to see this strong demand for nitrogen fertilizers, both here in the U.S. and worldwide, as a result of that situation that we have for crops where the crops are relatively high-priced," Miller says.

At the same time, Miller says, there have been supply disruptions over the past several months.

"We had, all year long, cutbacks in production in the Caribbean, which is a major source of our N," he says. "Not only that, but we had some difficulty moving product into the Midwest-a lot of it's coming in imports and coming up through the Mississippi River."

But while anhydrous prices are about 8% higher than a year ago, the prices for most of the other major fertilizers are steady to lower. Potash is down about 9% compared to last year.


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