Farmers waited for December fertilizer price drops
A fertilizer dealer says many farmers postponed their fertilizer purchasing decisions last month. Tony Grapsas is with Jay Mar in Plover, Wisconsin. He says, “The purchase decision had been postponed from a typical early December towards the later part of the month because prices on fertilizer were sinking, and I think they wisely waited until the low point or our cutoff date to finally sign on the bottom line.”
Grapsas tells Brownfield he and other dealers still have a lot of tons to cover. “There hasn’t been a lot of buying, whether it’s been N, P, or K, but if you look at the calendar, we’re going to be in the fields in about four months. We have to start committing and I think that could drive some prices.”
But, Grapsas says he’s not expecting the fertilizer price spikes seen in the previous two growing seasons. “The ridiculous numbers we saw the previous two years, that’s gone. We’ve gotten back to normalcy, but supply and demand, and having the product in place on time could nudge them upward.”
Grapsas spoke to Brownfield during the recent Wisconsin Agri-Business Classic in Madison.