Fertilizer 2012 $162/acre

[Jim Meade / Iowa City]

Illinois is projecting fertilizer prices of $162/acre based on prices at termiinals.  Higher than the last couple of years but not as high as 2009.

http://www.farmdocdaily.illinois.edu/2011/07/forward_contract_delivery_pric_1.html

This supports the idea that input costs continue to hold or increase for 2012. 

[marketeye]

Somebody must think 'N' is going higher. Terra Nitrogen, on Monday, rallied by 2.92% and broke out from a 2-week consolidation range to post a new all-time high of $142.00.

Where do you think prices are going? How high is probably the better question.

Mike

[Mike M2692830]

Cash price of NH3 at local coop is 780/ton all paid for right now and if the price were to drop, they would cover the downside. Did some quick math in my head yesterday spraying beans on costs of an acre of corn for 2012. With those fert prices, seed around 100, chem, insurance and fuel add up to around 370.00/ac give or take. Add in ones own rent costs whatever they may end up being and looking at cash price of corn in Oct 2012 of 5.60, these costs do pencil today. My point is there is a profit available if you are willing to lock in some costs and lock in a few sold bushels. May I also add this to the post..as a seed dealer, it might be wise to visit early with your dealers. Heard of  some early(Sept) cash discounts that added to the volume will save quite a bit of money...MikeM

[rawhide]

in my junk clay ground its $187 right now