Nitrogen starts to move pre-harvest
IN a remarkably stable week for this time of year, the structured approach initiated by the three major domestic nitrogen manufacturers is holding, with the first signs of product moving in the pre-harvest market..
Smaller loads of ammonium nitrate for immediate use are still trading about £92/t in the west, whereas the incentive for larger arable buyers in the east to take product now would place it on-farm about £87-88/t, with payment in November or December.
Current movement, although no doubt welcomed by the manufacturers, is by no means a rush as buyers come to terms with the realisation that their hopes for a deal similar to last season – which would place nitrogen in the lower £80s – will probably not happen.
The majors simply cannot afford to do anything other than turn round their present loss-making situation.
At the same time, many farmers seem to equate the price of nitrogen to the price of wheat, whereas there is no logical link between the two whatsoever.
If area aid were also taken into account, the nitrogen manufacturers would no doubt be delighted to match the figure.
If the current situation continues, then we shall see either significant tonnages moving on to farm, or a bonus for the storage industry.
Meanwhile, the aftercut market continues to be active, following the well-established pattern of purchasing fertiliser only for immediate use.
Imports are quiet and the PK market is reported as dormant.
CURRENT MARKETS NITROGEN
GREAT BRITAIN 20.10.10 Complex/blend* KN 20.5.15 England/Wales Grassland Markets 105-110 England Arable Markets Scotland 103-108 *Complex fertilisers are those where typically all nutrients are combined in one granule. IRELAND CAN 27.6.6 complex 25.5.5 complex 24.6.12 complex Northern Ireland CAN 27.2 Omega.5 18.6.12 10.10.20 Republic of Ireland*
Pre-harvest delivery
Post-harvest delivery
Small loads pay November
Imported nitrogen
£87-£88
£93-95 dependant on month
£92
££75 few imports
KNS
110-115/
90-95
90-95
90-95
No Market
93-96
93-96
93-96
108-112/
90-95
90-95
90-95
92-96
125-130
115-120
123-126
102-107
140-146
143-150
No market
*Note in the Republic of Ireland nutrients are expressed as elements not oxides. Analyses will not be directly comparable with those used in the UK.. *Prices in the Republic are IR£
FORTHCOMING MARKETS
Anticipated general prices from 01 June
N/S (High S) | N/S (Low S) | PK. 0.24.24 |
92 | 92 | 120 |
BACKGROUND MARKET Products not currently traded in volume 0.24.24 15.15.20 17.17.17
120
130-135
135-140
Note All illustrated prices are based upon 20 tonne loads for immediate payment. Prices for smaller loads and those with credit terms will vary considerably.
Source: Bridgewater Associates