Falling Pound presses fertiliser imports


By Roger Chesher


THE fall of the Pound has introduced another variable into the mix for new season fertiliser pricing.


In the absence of the Royal Show and Cereals talking shops, the major manufacturers have taken to the road to discuss the prospects for new-season sales, not only with merchants but also with farmers groups.


This development has upset some of the trade, who see the end-user as solely their preserve and are concerned at the prospect, real or imaginary, of manufacturers selling direct.


But in this insecure and ever-changing marketplace, manufacturers must surely look to every opportunity; internet, direct, groups, merchant, to safeguard market share.


As yet, new prices are not published, as suppliers seek to maximise end of season sales and also wait until the final moment for conflicting factors to evolve.


Urea prices are very low, around US$95 FOB (free on board) but this has yet to translate into an on farm price.


Granular Urea will, however, obviously be keenly priced.


On the other hand, thanks to Mr. Blairs fixation with the Euro, the Pound is now weak, thus increasing not only P and K raw material costs, but putting upward pressure on imported AN.


Whereas 12 months ago, AN was 78 CIF (carriage, insurance, freight), the exporter received US$118 with the pound at US$1.52.


At US$1.37 he would today only receive 106, a shortfall of US$12, so the projected on-farm new-season price of imported AN at 95 is now looking tight.


On the agronomic front, evidence is beginning to emerge from tissue and grain analysis that ignoring sulphur over the last couple of years is beginning to have a significant detrimental affect on arable crops.


This nutrient could be set for quite a comeback next season, which makes sense, as it is currently extremely cheap and markedly improves the efficiency of the more expensive nitrogen.


CURRENT PRICES


















New-season nitrogen (SP5) 34.5%

Anticipated new-season (July) domestic nitrogen

Imported urea (if available)

Imported AN

Blended 20.10.10 and 25.0.16

Blended 25.5.5
Liquid nitrogen, 37kg/100l or 29.6% N/t


June 120-124


July 108-110


No market

116-120 ex-stock

116-117

113-115

140



















NPK

June, pay cash

July, imported N

Complex 25.5.5

118-120

95-100

15.15.20

143


20.10.10/29.5.5

121


17.17.17

148













After-cut NK cash

0.24.24

TSP (47% P2O5) bagged

Muriate of Potash (60% K2O) bagged

118

114-116

125

122

 

IRELAND

Forecast spring prices
















 
Urea

CAN


24.6.12


0.16.36


Complex compounds
27.6.6


Northern Ireland

Market over

122

148

No market

148















 

CAN


24.21/2.10


Urea, imported


27.21/2.5


Republic of Ireland*

145-155

185

190

187

*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.

*Prices in the Republic are IR

  • IR1=UK78.74p; US$1=UK72.62p on 13 June

     

    Note All illustrated prices are based on 20-tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.

    Source: Bridgewater Partnership


    market link

  • See more