Fertiliser markets continue to rise as we move into autumn, when many farmers would often try to avail of a drop in market prices. Merchants are also running out of old stock, purchased at lower prices, to cushion the cost to the farmer.

Notice of further price increases has been issued in recent weeks and the trend is expected to continue. Nitrogen is seeing the biggest climb in prices, but phosphate and potash are also following the rising trend.

Among the major factors in the price increases are grain markets, which continue to rally. With 70% of the world’s fertiliser used by arable farmers, positive grain prices will keep demand high, as growers lock into forward prices for next season.

Natural gas, essential in the production of nitrogen fertiliser, has more than tripled in price since this time last year.

Low stocks and increased demand are fuelling the surge as more of this gas is used in electricity production. COVID-19 continues to affect staff shortages.

Industry reports show that nitrogen products have seen the highest increase. Ammonia is estimated to be up by 165% on last autumn’s prices. CAN has seen a price rise of over 70% since September, with urea following similar lines.

Phosphorus has doubled in price since last autumn and potash has increased by an estimated 60%. The heatwave in Canada is reported to have affected potash prices in recent weeks as mining is reported to have slowed down.

At present, CAN is being sold to merchants and co-ops at €310/t and over. Some merchants are expecting to be selling at €320/t in the coming weeks; an increase of €100/t (45%) on prices in January.

CAN price is reported to have increased by 70% and higher since the beginning of the fertiliser year in autumn 2020.

Low stocks

Low stocks have resulted in more price increases being issued by fertiliser manufacturers.

Bulk prices for 27% nitrogen in parts of Europe jumped another €15/t since the end of June to €298/t. Freight and handling then needs to be added to this cost.