AN sales hit supplies
EARLY SALES of domestic ammonium nitrate have had such an impact on supplies that very little is available, even at the November price.
For the second time in a fortnight, manufacturers have issued a new price, this time for December.
At £143-145/t, domestic ammonium nitrate simply reflects the increase in gas costs and given those costs the price could, arguably, have increased even more.
To farmers of course, this appears expensive but with a firm price across the board the scene is set for another bout of purchasing before Christmas.
The market is now high enough to tempt a reasonable volume of lower-priced imports into Britain, also before Christmas.
Reasonably priced granular urea is already on its way.
But the chain of supply for imports is so much longer than that for domestic supplies and shipping, port charges, bagging and haulage have all increased in cost, irrespective of the value of the fertiliser itself.
So anything more than a £10/t discount to domestic prices seems unlikely.
Autumn fertiliser values have also risen sharply in response to increased phosphate costs.
0.25.25 is now nearer £135/t than the £125 of only a month ago.
It is very hard to equate all this with the current price of grain.
Fertiliser and grain prices have mirrored each other for so many years that buyers became lulled into thinking that there was some kind of link between the two.
Sadly, the true link is with energy costs on a global scale and the price of fertiliser will only drop if poor demand forces it down.
Unfortunately for buyers, global demand is increasing.
Nitrogen (Domestic) N (SP5) 34.5% | New season | Imported urea. | Imported AN Lithuan | Blended | Blended | Liquid | |||||||||||
November £143-5 | No supply | £175 | £130 | £127 | From £124 | No market yet | |||||||||||
NPK | Sept | Imported 27.6.6 | Imported | |||||||||
Complex 25.5.5 | £134 | No supplies | No supplies | |||||||||
15.15.20 | £153 |
| ||||||||||
20.10.10/ 27.5.5 | £137 |
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17.17.17 | £158 |
| ||||||||||
| 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 | Blended £130-5 | £140 rising | £129 |
Ireland
Benchmark prices. Compounds out of season.
Northern | Urea, existing stocks only | CAN | 24.6.12 aftercut | 25.5.5
| Complex compounds |
| £155-£160 | £130-£134 | £160 (anticipated) | £150-£152 | £160-£162 |
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
