ALTHOUGH there are significant tonnages yet to be purchased, domestic ammonium nitrate is finally starting to roll from the factories.

Good weather making harvest easy, while quality grain and a corn price which is said to have bottomed out have restored some confidence in the arable market.

At the same time the gap between farmers expectations and the manufacturers pricing has closed with large orders moving on-farm about £85/t delivered.

Structure still remains in the marketplace however, and the industry expects this price to move upwards, month on month.

After a flurry of interest in autumn fertilisers, probably brought about by a cargo of 0.26.26 reportedly sold on farm around £120-123/t, sales of blended 0.24.24 have slowed and settled around £118/t.

By the time the various merchants involved have distributed the cargo, reputed to be some 12,000 tonnes, it will be very thinly spread.

The market for top dressing fertilisers containing both nitrogen and sulphur would normally be starting about now.

Last year these products were sold at “parity”, that is both nutrients were given the same value, making NS the same price as straight N.

Today a premium of some £3/t is expected for sulphur to reflect the increased costs associated with manufacturing.

Allegedly the premium is putting many cereal farmers off despite clear agronomic benefits which are, however, well recognised by oilseed growers.

Interest in forward buying remains weak.

CURRENT MARKETS

Immediate delivery N Post-harvest delivery N Small loads pay November Imported urea Imported nitrogen deliver December Imported 0.26.26 Domestic 0.24.24
£85 £92-95 dependant on month £92 £93 granular

£85 prilled

£73 £123 £118-120

 

IRELAND

 

Imported CAN

CAN

27.6.6 complex

25.5.5 complex

24.6.12 complex

Northern Ireland 85 88-90 124-128 112-117 120-123
 

CAN

27.21/2.5

18.6.12

10.10.20

Republic of Ireland* 99-104 137-143 140-147 No market

*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..

*Prices in the Republic are IR£

 

FORTHCOMING MARKETS

Anticipated general prices post-harvest

N/S (High S) N/S (Low S) TSP(47%P2O5) Muriate of Potash

(60%K2O)

PK. 0.24.24
92 92 130 117 120

 

BACKGROUND MARKET

Products not currently traded in volume

  20.10.10 complex/blend* KN KNS 20.5.15
England/Wales Grassland Markets 110-115/

105-110

90-95 90-95 90-95
England Arable Markets No Market 93-96 93-96 93-96
Scotland 108-112/103-108 90-95 90-95 90-95

*Complex fertilisers are those where typically all nutrients are combined in one granule.

15.15.20 17.17.17
130-135 135-140

Note All illustrated prices are based upon 20 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.

Source: Bridgewater Associates