Steady to firm in brisk spot fertiliser market

Fertiliser prices have been steady over the last month, with the exception of modest drops in phosphate and high nitrogen compound pricing, writes commentator Roger Chesher.

This belies the underlying global trend of higher nitrogen prices, particularly in the urea market where Egyptian product has risen to $500/t fob, which would put it on farm around £385/t. UK urea stores are emptying on good demand and, possibly partly as a result of this, domestic AN sales are buoyant.

Demand for compounds is strong in the grass sector and blenders are busy.

Prilled urea is cheaper on the import market, some $430/t, or around £360/t on farm, while renewed supplies of AN are expected after Easter when they should remain competitively priced.

So far the drought appears to have had little impact on demand for fertiliser. If anything farmers seem to be top dressing earlier to beat the drought, resulting in a brisk spot market. If dry conditions continue however, effects on sales will be felt in two to three weeks’ time.

This could see a switch away from urea to AN, which is more efficient in dryer conditions. Some growers are reported to be keeping urea in store and buying small volumes of AN for immediate top dressing.

These conditions will create the ideal testing time for the new breed of denitrification-inhibitor treated urea fertilisers such as Koch KαN. Gleadell this month entered the market with Piadin, a nitrogen stabiliser for slurry which can also be used in UAN liquid fertiliser.