Urea prices remain in freefall, dropping $80 a ton in the latest week according to trade sources. With prices now reported at $450 a ton in New Orleans, the market is around 40% off highs seen this summer, thanks to decent supplies and slow demand caused by chaotic financial markets.

While supplies at the end of summer were below year-ago levels, they were still above average levels seen in recent years. Plus, many buyers have stepped away from the table, either due to lack of credit or uncertainty over demand after the collapse in grain prices this fall. Indeed, trade in some products appeared to be frozen.

Buyers were reported absent in the ammonia market, further softening prices. Prices are down around $30 a ton internationally in the latest week, and forward contracts for November suggest they could drop another $200 once seasonal demand ends. That translates into a farm gate price of around $800 to $900 a ton. To read Bryce Knorr's weekly fertilizer review, click HERE.