It might be argued that this helps keep the price subdued. With an increasing number of farmers locking in small margins on their crops and often expanding their production volumes at the same time, and with users securing a given supply months in advance of delivery, there's little need for users to scramble for supplies by sharply raising bids. Millers are reported to be procuring new crop oats needs quickly this month. Consider the pros and cons of forward contracting, for your own operation. Just don't be too aggressive.
Every year is different.
What worked well the past three years might not work the next year. Fertilizer update Natural gas, the primary raw material used to make nitrogen fertilizers, is plummeting. Although still dear by historic standards, prices have fallen to a level that lets North American fertilizer manufacturers produce nitrogen at break-even, or better. They're ramping up production again. This increased production, along with imports that are running 30 percent to 60 percent above last year, should mean there's an adequate nitrogen fertilizer supply this spring.