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












Pre-harvest delivery

Post-harvest delivery

Small loads pay November

Imported nitrogen

£87-£88

£93-95 dependant on month

£92

££75 few imports

 

GREAT BRITAIN


























 


20.10.10

Complex/blend*


KN


KNS

20.5.15


England/Wales Grassland Markets


110-115/


105-110


90-95

90-95

90-95

England Arable Markets


No Market

93-96

93-96

93-96

Scotland


108-112/


103-108


90-95

90-95

90-95

*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


92-96

125-130

115-120

123-126















 

CAN



27.2 Omega.5



18.6.12



10.10.20


Republic of Ireland*


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

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