Fertiliser price shock
MERCHANTS ARE braced for a shock early next week when the price of nitrogen is published for the start of the new 2005/2006 season.
They have told customers to expect a starting price of £130/t on farm, but market leaders Terra are now more likely to start at £140/t for farm delivery in July, payment in August.
Though Britain’s other ammonia manufacturer, Kemira GrowHow, will undoubtedly follow suit, stocks of both suppliers are limited so sales will be tightly managed.
As much as 750,000t of orders are often placed in the first quarter, but manufacturers may only be able to cover half that volume with fertiliser manufactured at lower summer gas prices.
The price list will not go beyond September and will feature a £2 a month hike in both August and September.
The rules of supply and demand in the now truly global fertiliser economy have changed.
Most farmers are aware that high energy costs have pushed urea and ammonia to astronomical prices ($260/t f.o.b.).
But the fact that UK nitrogen prices will be cheaper than in France, for example, will come as no comfort.
At current cereal prices, a hike of £25/t over last July’s price will be hard to stomach and the season may well be slow to start whilst all options are considered.
CURRENT PRICES (£/t)
Great Britain
Straight | |
Domestic N (34.5%N) SP5 | June £145-150 |
Imported AN Lithuanian & Bulgarian | £138-142 where available |
Imported urea | £194 granular |
Liquid UAN | £142 |
TSP (47%P2O5) | £145 |
Muriate of Potash(60%K2O) | £133 |
Compound | ||
| Complex | Blended |
25.5.5 | £145-147 | From £138 |
15.15.20 | £163-168 |
|
20.10.10 / 27.5.5 | £147-149 | From £140 |
17.17.17 | £168-173 |
|
Aftercuts NK |
| £134 |
27.6.6 (imported) |
|
|
32.5.0 (imported) |
| £136-138 |
Trace elements | Copper, zinc, selenium, cobalt Iodine and sodium £11.10/acre pack |
Ireland
| Northern | Republic |
Urea | £200 (existing stocks only) | €270-280 (dependant on source and quality) |
| CAN | £130 | €160+ |
24.6.12 | £170-175 (anticipated) | €240-250+ |
25.5.5 | £160-165 |
|
27.6.6 | £170-175 | €247-250+ (CCF) |
†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.
*Known as 24.2½.10 blend in the Republic of Ireland
**Known as 27.2½.5 in ROI
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
