N prices similar to last years level

29 June 2001

N prices similar to last years level

NEW season nitrogen prices released this week have been pitched at a similar level to last year.

And early signs suggest manufacturers want to repeat last seasons monthly price hikes to tempt early buyers into the market to ease logistical problems associated with storing large tonnages.

Terra led with a price for ammonium nitrate that equates to a delivered on-farm value of £108-£110/t for July and £110-£112/t for August. Kemira and Hydro prices are at parity, unit for unit.

Sulphur-containing nitrogen products cost the same. Compounds have not changed and PK prices have yet to be announced.

The £2/t price increase between July and August is significant, says consultant Roger Chesher of Bridgewater Partnership.

"It signals an intention by manufacturers to encourage early buying. Farmers will need to decide whether to do this," says Mr Chesher.

Most pundits forecast increased plantings, and fertiliser use in the UK could be as much as 400,000t higher than this last season. "These factors indicate a higher nitrogen price in the spring so the early buyer could well prosper for a second year running," he says. &#42

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