The Facts

  • Fertilizer pricing is determined by the Ag market NOT turf.
    • Fertilizer prices are based primarily on Urea pricing.
  • The USDA predicts that 96 million acres of corn have been planted, driving up the demand on nitrogen (urea).
  • The heavy Spring Ag fertilizer use is almost over because of the early planting of the corn crop, so fertilizer prices are currently trending down slightly.
    • They are currently $70/ ton lower than the high point this Spring.
  • There is a suggestion that prices for nitrogen (urea) will continue to fall, BUT NOT back to levels of 4 or 5 years ago.
    • World demand continues to be strong.
    •      There is the belief that Potash (K) may come down in price a bit.
    •      Phosphates (P) are showing strength right now.

Suggestions for You NOW

  • Buy for your current needs and don’t try and outguess the market
  • Understand the risks involved in buying months ahead
  • CHECK with your ATS Rep regularly to learn about trending changes

Implications of Lower Raw Material Costs

A trending lower price for Urea on the open market DOES NOT translate into an immediate change in your fertilizer prices.  Formulators and Advanced Turf Solutions have to maintain stock to meet our customers’ needs on a daily basis.  It takes time to work through higher cost inventory.

Summary

Fertilizer pricing may seem like playing roulette but I can assure you Advanced Turf Solutions is doing its best to stay informed and position ourselves and YOU for the fairest fertilizer pricing in these volatile times.  We know that a win for you is a win for us.