Fertiliser market gets moving

ALTHOUGH there are significant tonnages yet to be purchased, domestic ammonium nitrate is finally starting to roll from the factories.

Good weather making harvest easy, while quality grain and a corn price which is said to have bottomed out have restored some confidence in the arable market.

At the same time the gap between farmers expectations and the manufacturers pricing has closed with large orders moving on-farm about £85/t delivered.

Structure still remains in the marketplace however, and the industry expects this price to move upwards, month on month.

After a flurry of interest in autumn fertilisers, probably brought about by a cargo of 0.26.26 reportedly sold on farm around £120-123/t, sales of blended 0.24.24 have slowed and settled around £118/t.

By the time the various merchants involved have distributed the cargo, reputed to be some 12,000 tonnes, it will be very thinly spread.

The market for top dressing fertilisers containing both nitrogen and sulphur would normally be starting about now.

Last year these products were sold at “parity”, that is both nutrients were given the same value, making NS the same price as straight N.

Today a premium of some £3/t is expected for sulphur to reflect the increased costs associated with manufacturing.

Allegedly the premium is putting many cereal farmers off despite clear agronomic benefits which are, however, well recognised by oilseed growers.

Interest in forward buying remains weak.

CURRENT MARKETS