New-season nitrogen prices announced at just over £300/t

New-season nitrogen prices have opened at the lowest levels since 2021 following a softening of the market over the past few months. 

Nitrogen prices have been quoted at about £310-£340/t for delivery between May and October, but merchants have warned of limited availability for some products.

In the longer term, delivered prices towards the end of the year are slightly higher, in the region of £340-£360/t.

See also: Wheat markets fall to £190/t on news of grain deal extension

There is still relatively low availability of stock from Europe, as product is being kept on domestic markets and less is available for export.

Falling gas prices are having a significant effect on fertiliser costs, and gas futures have dropped 67% since the beginning of 2023.

UK natural gas futures opened at 64.5p/therm on 25 May for the June contract, down from 198p/ therm at the start of the year.

Traders say fertiliser prices will continue to track gas prices, and markets are likely to remain volatile.

Exchange rates are also playing a significant role. The sterling-US dollar exchange rate was £1:$1.24 midweek, and a strengthening dollar could make imports more expensive.

Increased demand for liquid natural gas globally could also have an effect on future fertiliser prices, according to analysts.