One of the key challenges facing domestic inputs is the devaluation of sterling against the dollar. While currency has fallen away, the global collapse of stocks, bonds and equities has also collapsed the value of crude oil and pressured the price of global natural gas, a key input for ammonium nitrate. Sterling movements have lessened the pressure on UK natural gas prices, which have followed a comparatively normal trend for the time of year.
Nevertheless, the coronavirus pandemic has occurred when the majority of European crops are already in the ground. As such, most of the production inputs, such as fertilisers and agrochemical will like already be on-farm. However, the EU is not self-sufficient in mineral fertilisers. Typically, the EU imports these mineral fertilisers from Eastern Europe (e.g. Ukraine and Russia) and North Africa (e.g. Morocco & Algeria).
As such, some reports have highlighted potential concerns over the disruption to supply chains, which would create price volatility. However, the latest outlook from the EU Commission expects that there will be no major issues in terms of availability as a result to the pandemic. Furthermore, it suggests that fertiliser prices could decline, reflecting the fall in energy prices.