Calum Findlay, ADM Agriculture’s head of fertiliser, comments on the markets

European natural gas prices are soaring again. Europe’s main trading hub for natural gas futures, the TTF in the Netherlands, is trading at its highest level for more than a decade, eight times above year-ago values. This is supporting nitrogen prices as we head into Q1.

Ammonium nitrate prices in the UK were withdrawn without notice from UK producer CF on Monday. The company is hesitating before presenting a further offer.

Globally, urea is still trading close to the $1,000 FOB mark. However, as we head into the Christmas period, UK business has slowed as many wait to see what 2022 brings. More of the same is forecast and in advance of spring, ADM has a further urea vessel due to arrive in January to cater for this requirement.

ADM also has a vessel of quality compound Piamon, 33N 30SO₃, arriving at the beginning of 2022 to service any high sulphur requirements where a shortage is likely in the UK.

Fertiliser raw material prices are continuing to rise, while shipping freight costs and haulage availability in the UK are becoming increasingly concerning. The next three months are going to be very challenging for agriculture and we suggest planning ahead for any crop nutrient needs.