10/27/08 Fertilizer Price Drop & DDG Market

Fertilizer Prices Drop & DDG Market plus Food Forethought. I'm Greg Martin with today's Northwest Report. Fertilizer prices continue to drop as demand has dried up with buyers anticipating lower prices in the wake of the severe downturn in grain prices and the turmoil in world financial markets. Phosphate dropped to about $896 per short ton from $910 a week earlier and $1,074 in early August. Ammonia prices rose further during August and September, but buyers are now reported withdrawing from the ammonia market as well and price weakness is starting to show up. Most farmers won't see fertilizer price decreases passed on to them this fall, but this is not a time to be locking in prices on inputs needed for next spring. Grains Council President and CEO Ken Hobbie says interest in distillers grains really started taking off in 2004 and there's been phenomenal growth in the export market. And while Canada and Mexico remain the best customers for U.S. distillers grains there may be opportunity in other markets. HOBBIE: Japan is coming on very rapidly. We're seeing a big growth in that market and we're pretty excited about some of the other Central American markets and South American markets are sort of coming awake to this product and so we're expecting to see growth in a lot more place than just Canada and Mexico in the future. Now with today's Food Forethought, here's Lacy Gray. Renewing and reenergizing rural America without threatening the very essence of what makes rural living so appealing and inviting is going to prove to be a bit of a challenge. But I feel rural communities across America are up to that challenge. I grew up in a small community of only 2500 people. Everybody knew everybody and was there for each other through the hard times and the good. Rural America is facing hard times right now. The downturn in the economy for rural areas over the last several years has regrettably forced many people to move out in search of employment in the cities. Things could turn around for rural communities though very soon. Alternative biofuels production and alternative energy businesses are two prime examples of economic opportunities for these areas. Rural America has always been the very heart of our nation and with the right support, planning and commitment it will continue to beat strongly for future generations. Thanks Lacy. That's today's Northwest Report. I'm Greg Martin on the Northwest Ag Information Network.