It was already a wild bull fertilizer market going into the TFI Fertilizer Business Meeting in Dallas last week, and by the end of the meeting it was still not tamed, as prices for all major fertilizer products continued to gallop. DAP, already at record prices, continued unbridled. New prices posted on Monday, Feb. 12, were ancient history by the end of the week, as prices continue to buck up with each new trade.
Most industry veterans could not recall such a year. Long-timers could harken back to the 1973-1975 time period, when prices soared, but noted that that came after national price controls were lifted and there was a brief grain shortage. That bull market was to crash, but there are few naysayers this time around. This time sellers are optimistic that the growing ethanol boom will underpin an expected surge in corn acreage this spring, and this year’s demand will continue or grow for years to come.
Most industry players continued to express surprise that the DAP market has taken center stage away from urea, though both were up last week. Not to be totally outdone, domestic potash prices were also reported to be moving up.
TFI said attendance at this year’s meeting was about the same as last year’s in sunny San Diego (GM Feb. 13, p. 1). Dallas brought with it wet weather for the golf tournament and cold weather on departure. Many stayed behind through Thursday to trade or due to weather delays.