Interest In Nitrogen Fertiliser Boosts Confidence

The price focus this week is still on nitrogen and the major manufacturers have largely left their compound prices as they were at the end of the last season.

However, with interest in compounds other than autumn PK at a low, the price is hardly significant. Blended 20.10.10 has crept up a little to 112/tonne.

As usual the price band for autumn PKs is fairly wide, reflecting the quality differences in that market. Products are to be had at 108-113/t for 0.24.24. but business is slow.

This may be due to the poor weather delaying harvest but statistics recently published by the Fertiliser Manufacturers Association indicate that the trend in PK use for cereal and oilseed growers is downwards.

Farmers who use PK fertilisers continue to apply at the same rate, but increasing numbers of growers are taking a PK holiday.

This could seriously affect soil fertility warns the Association.

Meanwhile the August price is in force for domestic AN, but such is the interest in nitrogen business that the manufacturers are already reviewing their July/August/September offers to ensure that they have not exceeded capacity.

We might see the August price-ruling move to the September figures sooner rather than later if all the August offers prove to have been taken up by merchants.

With the majors about to renegotiate their raw material contracts and rumours of very high gas price increases in the offing, confidence that the spring price will exceed 130/t is growing.

Merchants could well profit by taking products into store at todays prices to sell after January.

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