After rolling prices on at the previous levels at the end of April, last week CF withdrew those terms, and increased prices by effectively removing the £ 10 per tonne ‘allowance’ on Nitram introduced in early March. NPK grades also increased from £6 – 24 per tonne depending on the grade. Domestically UK Nitrogen applications are probably set to continue much later than usual, cold, and dry conditions have delayed applications on many crops, especially grass. What impact this may have on the timing of new season re-set is maybe a touch too early to say. Nitrogen markets internationally have been very volatile over recent weeks. Ammonia, key to A.N production has hit seven-year prices highs as multiple plant shutdowns around the world this spring cause traders and manufacturers to desperately seek supply.
MMTC (Metals and Minerals Trading Corporation of India) closed its Urea tender last week, buying 550 K mt. This was below industry expectations as 1.5M mt was forecast by some. Prices were lower by just over $ 20 as a result. However further tenders are due again soon, and this may be part of the usual negotiating tactics, or this could be a recognition of the practical difficulties in India under the current Covid crisis. Other challenges in Asian markets at present is the availability of shipping, so even if India could deal with 1.5M tonnes, it appears there were not sufficient vessels available to transport it, especially from China which will only supply one cargo in this recent tender. Even with this lower volume and lower pricing this still places Urea into the UK at over £ 300 per tonne bags delivered onto farm, it is safe to assume there is not much appetite to commit at this level yet.
BASF Real Results
BASF have published their May edition of Real Results Newsletter. Real Results is a virtual farm where growers can explore over a dozen fields with topics such as oilseed rape, cereal herbicides and fungicides, nitrogen management and digital farming. The May edition features an article on Urease inhibitors ‘A Growers Perspective’. Urease inhibitors have the potential to help reduce impact on the environment and to improve yields. It is still not known what direction DEFRA will take with Urea use, or what part future fertiliser use may have within the transition from CAP schemes to new forms of agricultural support, so it is good to know that companies such as BASF are looking at solutions that consider a both the growers need to make profit alongside environmental considerations. To register for BASF Real Results Newsletter, go to :-
Economic Data as at close on Friday 7rd May v (30th April 2021) £ = $ 1.3982 ($1.3866) £ = € 1.1498 (€ 1.1486) Crude Oil = $ 68.27 ($ 66.57) Natural Gas =$ 3.00 ($2.94) Please treat pricing on graphs as a guide, please use quote request form for an up-to-date price.