Spring fertilizer supply and uncertain price outlook

High gas prices continue to make production unprofitable for many fertilizer factories, reducing global production at a time of high global demand and making the spring supply outlook very uncertain.

As prices continue to strengthen, importers are reluctant to take the risk of reserving fresh cargo, especially as transport and shipping logistics remain difficult and costs remain high.

Imported AN costs up to £ 30 / t more than CF Fertilizer’s last two offerings, traders said.

The trade expects new UK-made ammonium nitrate prices to come out this weekend at a higher level than the most recent supply, which put the product on the farm for delivery in December / January at £ 610-620 / t.

See also: Advice on reducing fertilizer rates when prices are high

With some traders still awaiting supplies of products reserved for delivery in July / August, the planned reopening of CF Fertilizers’ Ince site has generated great interest, which is expected to resume producing grades of sulfur.

The company has not responded to several Farmers Weekly inquiries on this matter over the past two weeks. However, the trade does not expect production to restart until mid-December.

Fertilizers supplied to UK farmers fell by around 4% in the season ending in late October, trade body AIC said Farmers Weekly.

“Sales have lagged most of the year due to price rather than overall availability,” a spokesperson said.

“As a result, the annual market is short of around 150,000 tonnes compared to the same period last year. Overall, however, this represents only about 4% of the total cumulative market of around 3 million tonnes and more. “

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