Farming News - Fertiliser Market Report: UK prices comparatively friendly

Fertiliser Market Report: UK prices comparatively friendly

 

Calum Findlay, Gleadell’s Fertiliser Manager, comments on the fertiliser markets

 

Urea

 

Some promising weather in the UK this week has allowed land to dry and application has now started in some areas. Demand for nitrogen and sulphur products has certainly increased. 

 

The global urea market is still firm with significant tonnes being purchased by the US. Over the past two weeks this has not been reflected in the UK, but the upturn in demand is set to change that. Some suppliers have already withdrawn from the market.

 

For now, urea in the UK continues to trade at £15/t below the global market, making it by far the cheapest nitrogen source available. It is trading at a 20p/kg discount to ammonium nitrate; for grassland farmers and last-minute nitrogen buyers it is certainly worth taking advantage of this, with a couple of weeks of colder weather due to hit the UK.

 

Ammonium nitrate

 

Ammonium nitrate prices are solid in the UK and even firmer on the European market.  Demand in all areas is increasing daily and nitrates in general would appear to be tight in the UK. Imported AN is sold out for March and new price levels posted for April are about £10/t higher than today. Domestic prices are holding and £300/t is now the level in most areas.

 

Phosphate and potash

 

NPK+NPKS demand has increased dramatically over the past few weeks with prices firming globally.  UK blenders however have struggled to increase levels as competitive pricing is needed to secure tonnes.

 

Phosphates have firmed globally with replacement levels on DAP now about £400/t; expect further increases in the coming weeks. Potash is still trading sideways and continues to lack direction.