Nitro rise met with resignation
PRICE RISES for essential farm inputs are never welcome, but the announcement of a £7/t rise for early nitrogen over last year‘s prices has been met with a degree of resignation by both farmers and merchants.
With just Yara set to declare their intended cash nitrogen price for July delivery it seems that the Terra and Kemira £120/t will hold, despite some June positioning for very large orders.
But, widespread media reports have this week (w/e June 25) hammered home the degree to which Britain‘s gas supply network is at risk for the next two years or so until imported gas comes on stream.
This realisation is making many fertiliser buyers adopt a forward view and buy early.
It is not simply the prospect of prices rising as the season progresses which is stimulating interest, there is a growing concern over interrupted supplies.
Independent Cheshire based agronomist Paul Sweeney specialises in fertiliser agronomy and supply chain issues and stressed the need to get fertiliser requirements organised and on farm early.
“Given a cold winter and a tight gas supply, domestic consumers and electricity generation will have priority over fertiliser production,” he warned.
“Although production could continue utilising imported ammonia, price and supply concerns this season are quite real.”
The spot market for grassland compounds is quite brisk, and with the publication of new season nitrogen pricing, the gap between blends and complex compounds has shrunk to about £7 tonne.
New compound prices are not expected until September at the earliest.
Nitrogen (Domestic) N (SP5) 34.5% | New season N | Imported urea. | Imported AN Lithan | Blended | Blended | Liquid | |||||||||||
£120 | £133
| No market yet | No market yet | £128 | From £125 | No market yet | |||||||||||
NPK | April | Imported 27.6.6 | Imported | |||||||||
Complex 25.5.5 | £130 | £138 | £128 | |||||||||
15.15.20 | £155 |
| ||||||||||
20.10.10/ 29.5.5 | £135 |
| ||||||||||
17.17.17 | £160 |
| ||||||||||
| Trace elements | 0.24.24 | TSP (47%P2O5) | Muriate of Potash (60%K2O) |
| Copper, zinc, selenium, cobalt Iodine and sodium Per acre pack £11.10 | New season £131 | £140 | £127 |
Ireland
Benchmark prices
Northern | Urea, existing stocks only | CAN | 24.6.12 aftercut | 25.5.5
| Complex compounds |
| £155-60 | £130-34 | £160 (anticipated) | £150-52 | £160-62 |
Republic of | CAN, large price variations | 24.2½.10 blend | Urea | 27. 2.5 5 | |
| €195 | €190-210 (Russian) €225-240 | €200-250 (dependant on source and quality) | €243 (CCF) €200 import blend | |
*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.
Note All illustrated prices are based upon 24 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.
Source: Bridgewater
