Fertiliser prices move to September level

Once more the majors monthly production is sold out before the month end and prices have now moved to the September level, which should put AN on farm at 116/t.

Anxious not to hike prices too high in January, it would appear that the manufacturers monthly jump between August, September and October pricing will be 4/t rather than 3/t, making AN 120/t in October.

It appears that prices may now also be staggered in January, February and March rather than leaping immediately to the spring price after Christmas.

Increasing prices now will help the majors weather the price rise in gas, which is the key raw material for ammonia production.

Nitrogen, which comes from the atmosphere, is still free, as legume growers recognise!

The few imports coming in are now priced at the ten pound differential below UK material.
Interestingly, small volumes of high N compounds have been reported as being imported.
At 32.4.0 and 33.0.3 the P or K content is negligible.

This, so-called “dirty N” is designed to circumvent anti-dumping legislation but the on farm price is such that the major share of the savings made is retained by the vendor. No doubt this loophole will soon be closed.

Fuel costs are placing pressure on transport, as farmers currently selling grain will recognise.

There seems no respite to the upward pressure on nitrogen costs. The moral would seem to be to purchase compounds now before the increase is passed onto them in October, and to follow the lead of larger agri-businessmen who are making nitrogen purchases now.

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