AN supply continues tight, urea availability is better
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More than half of farmers’ nitrogen requirements is estimated still to be ordered, and stocks of ammonium nitrate (AN) remain tight.
Volatile gas prices have recently led to further European plant shutdowns, but AN prices are relatively stable as demand is in a pre-harvest lull, exacerbated by the cashflow challenge of buying fertiliser at current prices.
One national trader estimated that about 45% of the nitrogen requirement has been ordered in the mainly arable East, but that in more mixed farming areas less has been bought, while many farmers in mainly grassland areas have yet to order.
See also: Crop management, nutrition and fertiliser advice
CF Fertilisers is releasing relatively small tonnages, with only spot deliveries of AN available, at £750-£765/t delivered to farm.
Imported AN is being offered, with availability varying regionally and prices in a range from £727-£745/t.
Increased global interest in urea has pushed the price up over the past couple of weeks, but at 46% N it remains competitively priced against AN, with good availability. Â
Urea was offered at £730-£760/t this week, with the range accounted for by haulage costs and delivery dates, which are from spot to December.
Phosphate and potash prices continued very firm on supply issues as a result of the Russia-Ukraine conflict, with diammonium phosphate at more than £1,000/t.
Fertiliser update (£/t for spot deliveries*) |
|||||
UK AN | Imported AN | Urea | MOP | DAP | TSP |
750-765 | 727-745 | 730-760 | 750-760 | 1,060 | 910-930 |
*Refers to urea, which is July to December delivery |
Eustice challenged on input prices and availability
Defra secretary George Eustice has been given until 7 July to respond to concerns raised by the Environment, Food and Rural Affairs (Efra) committee following CF’s announcement that it is to close its Ince manufacturing plant at the end of this year.
Chairman Sir Robert Goodwill asked Mr Eustice to set out the assurances he has received about the adequacy of fertiliser and carbon dioxide supply, and the work Defra has done to verify those assurances.
The committee also asked Defra to provide further information about what solutions are being explored through the commitment in the government’s food strategy to develop plans to bolster resilience of critical inputs such as carbon dioxide and fertiliser, as well as a publication date for the specific long-term plan on carbon dioxide due this year.