anhydrous ammonia prices
Anhydrous ammonia prices in Illinois have been slowly increasing since the beginning of 2011. According to Agricultural Marketing Service’s first report in 2011, anhydrous ammonia prices averaged $777 per ton across Illinois. 10/28/2011 12:28 AM. 1  Hmmmmm as i see it the price of Nat gas for the past year has been between $3-4 and anhydrous a year ago was $675/ton....today nh3 is $900/ton and nat gas is still $3-4....with the fertilizer industry down to one or two producers and not much competition its ez to be greedy. Figure 2 illustrates correlations by showing anhydrous ammonia, corn, and natural gas prices. So as to control the scale of the graph, these prices are standardized by dividing each price series by the average for the September 2008 through March 2011 period. Find great deals on eBay for anhydrous ammonia tank and anhydrous ammonia tanker. Shop with confidence. In the November 10 report, the anhydrous ammonia price was reported at an average of $405 per ton, with an offer range from $343 per ton up to $440 per ton. Anhydrous ammonia prices have averaged $404 per ton during the months of September, October, and November of 2017. For a $3.50 corn price and a $400 per ton anhydrous ammonia price, the MRTNs are 169 pounds of nitrogen for northern Illinois, 186 pounds of nitrogen for central Illinois, and 200 pounds of nitrogen for southern Illinois (see Table 1). Since September 2008 – the period shown in Figure 1 above – anhydrous ammonia prices have been correlated with both corn and natural gas prices. The anhydrous ammonia--corn price correlation is .68 while the anhydrous ammonia--natural gas price correlation is .58. The correlation between ammonia-corn likely indicates a demand relationship; higher corn prices indicate larger future planting of nitrogen using crops, leading to more use and higher prices of ammonia. To get 170 pounds of nitrogen, a total of 207 pounds of anhydrous ammonia needs to be applied (207 = 170 pounds of N / .82 of N per pound of nitrogen). The costs of 207 pounds of anhydrous ammonia is $41.88 per acre when a $404 per ton anhydrous ammonia price is used to represent 2017 prices. The $504 per ton price in 2016 results in a nitrogen fertilizer costs of $52.24 per acre. The costs savings for anhydrous ammonia then is $10.36 per acre. The $10 per acre in nitrogen savings can vary. Then in December 2009 ammonia prices began increasing, following increases in natural gas prices. While natural gas prices declined in early 2010, ammonia prices did not decline. Instead anhydrous ammonia prices continued to increase, following increases in corn prices. For fall 2011, there are few indications that natural gas prices will increases. For example, the average anhydrous ammonia price is $669 per ton from September 2008 through March 2011. On the graph, the September 2008 price of $1,149 per ton is shown as 1.71 ($1,149 / $669 average), indicating that the $1,149 price is 71 percent above the $669 per ton average.
The anhydrous ammonia price was reported at an average of $405 per ton, with an offer range from $343 per ton up to $440 per ton.