Fuel prices push higher, AN holds steady and urea dips
© Tim Scrivener Red diesel prices rose by an average of just under 1p/litre over the week to Wednesday 23 February, with increases of up to 2p/litre depending on region.
The Russia-Ukraine tensions are keeping oil and other energy markets jittery, with oil pushing US$100 a barrel this week.
The average price for a 5,000-litre drop early next week was 76.94p/litre, from a group of regular sources across the UK contacted by Farmers Weekly.
See also: Woodland creation offer – what farmers need to know
The regional range varied from 73.95p/litre in the North East to 78.82p/litre in East Anglia.
At price discovery platform Yagro, relationship manager Rupert Harlow said quotes varied between 74p/litre and 77p/litre for deliveries of 5,000-18,000 litres, with lead times of three to four days.
AN prices steady
UK ammonium nitrate (AN) prices are holding steady at about £650/t onto farm for March, with no prices available for delivery further forward.
Imports are priced from £625-£640/t, while the urea market has softened by about £30-£40/t in the past few weeks as global demand has slowed.
This puts supplies onto farm at about £685/t for deliveries near ports and up to £705/t inland. However, supply in the UK is limited. The global urea market is volatile and rose by about US$40/t (£29/t) early in the week, while gas prices firmed by 12-15%.
With Russia the world’s largest exporter of AN, liquid urea-ammonium nitrate, urea, NPK and ammonia, traders warn that any significant action in Ukraine has the potential for massive market and supply disruption.