Urea looks good buy
27 July 2001
Urea looks good buy
GROWERS with the equipment to use it should consider booking granular urea early this autumn, suggests Framlingham Farmers.
"For those farmers capable of spreading it accurately the saving will be well worth having," says buying manager, Philip Collins.
UK manufacturers ammonium nitrate list price of £110/t for July delivery, August payment, equates to 32p/kg of nitrogen, compared to 26p/kg of N for imported urea which is indicated at £120/t. "That is over a 20% saving," he says. What is more, UK ammonium nitrate is quoted up £2/t for August delivery, with no prices available for later in the season. In contrast, the urea price may well be available into October, he believes.
"The UK manufacturers can only make 50% of what will be used in the UK so they are confident they will sell all they can make."
Workload and cashflow may tempt growers to delay deals, but the possibility of import tariffs later in the season mean growers should order sooner rather than later, he says. *