New-season nitrogen at 111/t?

By Roger Chesher

IN the last week of the current fertiliser season, indications are that the opening salvo of nitrogen prices will be around 111/t.

Little surprise therefore that this weeks sales continue to be almost completely dead when domestic nitrogen prices hold at 116/t.

Only aftercut and grazing fertilisers are selling in a much-reduced market, now estimated to be nearer 30% below the norm in volume for the nationals.

Blenders are faring a little better, but still the market is depressed.

If this reduced volume is simply because the market is running later due to weather conditions, or because first cuts have supplied higher than expected dry matter for next winter, then it is understandable.

If, however, farmers are holding back in anticipation of cheaper prices to come in the early delivery season, then a significant amount of dry matter will be lost in late applications which will never be compensated for by savings in fertiliser price.

Next week much more will be revealed, not just in pricing, but more significantly in terms of suppliers relationships with their merchant customers.

It is anticipated that fertiliser terms will be much more straightforward, with no guarantee of fixed margins and, with fewer people out there selling to farmers, pricing could be more uniform.

CURRENT MARKETS (prices in )