Crude oil prices fell sharply in the wake of the US mid-term elections, where US president Donald Trump’s Republican Party were routed.
Crude oil price was $86 per barrel on Wednesday, a fall of over 15% since the start of November, where prices were sitting at $102/barrel.
If prices continue to decline, it should result in fuel prices falling over the next couple of weeks.
If lower prices hold, it will help keep fertiliser prices down when the 2027 market opens in earnest.
With so much uncertainty and volatility around oil markets and input prices, many farmers have purchased some fertiliser for next year in recent weeks.
The first forward price offer for 2027 has been made to growers supplying malting barley to Boortmalt.
Farmers can fix up to 20% of their tonnage for a base price of €250/t. That price offer was made before the recent fall in oil prices. It is similar to the forward prices for the 2026 season, and is €31.25/t higher than the harvest price determined by the agreed pricing mechanism.
Farmers have also been availing of opportunities to forward sell oilseed rape for 2027 at prices close to €500/t. That price has also fallen sharply in recent days.
