Fert market waiting for Cereals
EARLY NITROGEN terms will not now appear until the Cereals Event despite a flurry of merchant activity and orders placed on “trust”.
But their publication next week (June 16) will still be earlier than in recent years and reflects a need for some stability in the current climate of volatile energy costs.
This places the marketplace in some limbo, as few will be willing to pay £130/t for something which is likely drop to £120/t in one week‘s time and the weather is so dry that grass growth will hardly be compromised by waiting an extra week to apply fertiliser.
Likewise, importers and their suppliers are loath to commit until there are signals that new season prices are firm.
But wholesale pricing and order dates are likely to be rigidly controlled this season, to prevent the accumulation of large volumes of orders which exceed monthly manufacturing capacity.
As energy costs fluctuate, sales prices will need to reflect manufacturing costs if the factories are to remain profitable.
Although not linked to energy, phosphate and potash costs are also on the increase and this will be reflected in “autumn grade” prices.
0.24.24 for example, is forecast to be in excess of £130/t delivered.
This particular market no longer has the importance it once had.
Farmers are happy to spread the cost of P and K by taking a “PK holiday” for a year, or adding these nutrients to the crop in the spring.
Nitrogen (Domestic) N (SP5) 34.5% | New season N | Imported urea. | Imported AN Lithan | Blended | Blended | Liquid | |||||||||||
£129 | £120
| No market | £115 | £128 | From £125 | £128 | |||||||||||
NPK | April | Imported 27.6.6 | Imported | |||||||||
Complex 25.5.5 | £133 | £138 | £128 | |||||||||
15.15.20 | £155 |
| ||||||||||
20.10.10/ 29.5.5 | £137 |
| ||||||||||
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
