Rain leads to slow trade in fertilisers

THE weather can have a surprisingly significant effect on the fertiliser market. Following the early arrival of T-Sum, the industry geared up for a rapid start this spring, but expectations were dashed by continual rain.

When orders finally did start to materialise, the industry found it had lost virtually one complete dressing. The result was high stocks and low prices.

Now that the aftercut grassland market is under way, the weather effect is more subtle and much more interesting.

With winter and early spring rainfall significantly higher than normal, sulphur levels in soils are much lower than last year.

Second-cut silage is responsive to sulphur and agronomic logic should dictate a much higher usage of NKS than in previous seasons.

Fertiliser companies have to predict market uptake and prepare stocks accordingly. If farmers were to widely exploit the sulphur opportunity this season, it is doubtful that all sulphur orders could be met.

There is no sign, however, of current demand for sulphur exceeding supply, and reading this market remains a major headache for suppliers.

Hydro Agri has announced management changes, with Klees Bleker now heading up the UK business and Doug Shaw as commercial manager responsible for pricing.

Tighter reporting relationships indicate a desire to maintain a strong commercial grip on the marketplace.

It has been a quiet week for fertiliser sales, but the Scottish aftercut market is now showing interest.

Farmers who would normally buy third-cut fertiliser and possibly mid-season grazing products, along with second-cut, seem to be currently content with just a single purchase. There is no talk of early season nitrogen as yet.

Imports remain low, with nitrogen CIF at 65 leading to FOL prices of about 68. This in turn results in on-farm delivered prices of 80/tonne. In Ireland, prices are under pressure to reduce, but holding.

CIF carriage insurance and freight; FOL free on lorry)

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