Fertiliser prices bump along the bottom

FERTILISER prices are bumping along the bottom and market commentary is notoriously difficult.

At this time of year, fertiliser suppliers would normally be in the early stages of making markets.

In the old days of market stability, prices were always highest at the spring period with structured discounts for early deliveries starting in June.

Such a structure has long gone but one would normally begin to get a feel for the anticipated new season nitrogen price.

With the market at or near the bottom there is little evidence that the new season will start at a different level than at present.

It is, however, almost certain that the major manufacturers will do their utmost to establish a little more structure into the marketplace.

:”Trust”, where a merchant would take an order and settle the price later, will be under pressure to disappear and credit terms could well be shorter.

This could persuade farmers to transfer both cost and risk to the bank or to the few remaining farm finance companies.

Arrivals of imported ammonium nitrate have dried up. The incentive to import is low, so even though prices wont change perhaps the larger companies will have a chance to firm up terms and conditions.

European potash prices have edged up slightly and consequently PKs have firmed a little.

The aftercut silage market has settled in the south but in the north and Scotland group prices have been quoted as low as £87-88/tonne.

This market is just starting in Ireland with prices under pressure and plenty of transport to keep product moving cheaply.

Individual farmers continue to buy only as needed and it is important to recognise that the price for a small load can be £14-15/t more expensive than the group and 20/t prices illustrated here.

CURRENT MARKETS