How is DEF Pricing Going to Look Going Forward?

Posted by John Presti on Jan 27, 2014 3:11:00 PM

According to farmfutures.com in their weekly review, Urea prices on the international market spiked this week, up over $120 per ton.  Futures were trending lower for the spring and summer months though, on hope that international supply issues could relieve some of the demand pressures  - hopefully that leads to a pull back in pricing over the next couple months, but time will tell. As you know, ammonia pricing also impacts DEF pricing, and the good news is those prices eased some this past week or stayed relatively stable anyways, depending on the individual market. (you can read more about the specifics on the Urea & ammonia market movements here: http://farmfutures.com/story-weekly-fertilizer-review-0-30765 )

 

Since DEF is 32.5% urea, price swings on the market impact the price of DEF. Urea is also used in agriculture for nitrogen-release fertilizer, so usually we see spikes in demand (and price) along with agricultural schedules. This recent spike appears to be more supply related.

 

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Topics: Commodities, DEF, Diesel Exhaust Fluid, Urea

Another DEF Price Increase???

Posted by John Presti on May 2, 2012 1:18:00 PM

Spring is not looking to be a very fun month for lubricant decision makers out there.  We just had the industries FIRST price increase on diesel exhaust fluid last month; We in the process of having this year's first finished lube price increase; NOW, diesel exhaust fluid is going up again.

My suggestion, buy NOW and stock up!  But do not stock up too much.  DEF (pending on the surrounding tempatures) has a shelf life of 2 years.

Feel free to give me a call if you have any questions. (617-884-7800)

We did a previous entry running through what drives these type of price increases, specifically the April 2012 increase on DEF - if you want to read the entry to get some background info, Click here to read about the Urea Price Increase

 

 

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Topics: DEF, Price Increase, Diesel Exhaust Fluid, Urea

UREA Price Increases Ahead

Posted by John Presti on Apr 1, 2012 9:13:00 AM

UREA price increase is happening in April 2012, so all distributors and end users of diesel exhaust fluid (DEF) will be effected. If you are a DEF user, please call DKB today to get your latest price.

If you are curious...

Urea (fertilizer) is mainly used in the agriculture market and changes in the agriculture market, including rising natural gas prices, availability, and global agricultural factors have impacted price over time. Urea price is highly dependent on natural gas pricing, so when natural gas increases, urea follows. Because of its primary agricultural use, Urea is traded as a global commodity, and therefore liable to fluctuate with global conditions.

For a general run down on DEF, click here

For a general rundown on Urea, this website has a great explanation of what it is, why theres a global market, and how pricing works http://www.agrotainturf.com/QandA.php 

 

urea commodity price DEF

(The above chart shows urea fluctuation over the past year... Chart is from IndexMundi.com - great resource on commodity movements)

 

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Topics: Commodities, DEF, Price Increase, Urea