Fertiliser producers continue price campaign

ANOTHER very quiet week for deliveries underlines the determination of the major producers to get prices in line with their published terms.

This is beginning to cause frustration in some quarters, as the few merchants who have continued to quote prices below £85/t delivered are unable to purchase supplies at low enough prices.

Unlike last year, there is no “trust” business at all. (Trust is where fertiliser is delivered on-farm and the price is settled later)

At the same time, the lack of business is failing to stimulate imports, either in nitrogen or in P and K for the forthcoming autumn seedbed market.

Recent investment in storage capacity is now paying off for the manufacturers, who are able to continue to run without expensive shutdowns, but are not forced to sell at uneconomic prices.

Kemira has taken space at the adjacent, now disused Ince “B” power station and Terra is said to be increasing its storage capacity at Billingham.

Meanwhile the harvest, which started so promisingly, has been seriously hindered by rain, giving arable farmers even less incentive to spend money.

Rain has given mid-season grazing a little boost, however, and the spot market for 20.10.10, 25.5.5, etc has increased, but only slightly. Prices for these grassland products remain the same.

CURRENT MARKETS