Ammonium nitrate price drops £10/t

Nitrogen prices have fallen by £10/t as CF Fertilisers UK looks for more market share.

The drop surprised many and puts UK manufactured ammonium nitrate (AN) on farm for March/April at £233-£235/t, on normal payment terms.

This compares with prices quoted in January of £246-£248/t for February delivery and March payment.

Some traders expect an attempt at a £2.50/t increase in April if the new lower prices tempt farmer orders in any decent volume.

The drop has left some importers struggling to recoup their costs on stock in store that was brought in when the market was higher.

Imported AN is priced at £225-£235/t delivered to farm in March/April.

See also: Prepare your farm business for Brexit 

There is no issue with fertiliser availability in general, although there is relatively little urea on offer with currency a big risk and few willing to bring in any new stock at this stage in the season.

This time last year saw some very competitive offers on autumn bookings for urea supply, but traders warn this is unlikely to be repeated this year.

There has been little movement in phosphate and potash prices.

While there is relatively little spring business left to do in arable areas, up to half of business is yet to be done in grassland areas, say merchants.

A cold spring and cashflow pressure mean that fertiliser orders in livestock and dairy areas are being done only on an “as and when needed” basis.