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Reports from the trade suggest that most merchants are reasonably well stocked with fertiliser at present, but with sanctions imposed on Russia, getting new stocks of product could become an issue over the next two months.
Answering questions in the Stormont Assembly chamber on Tuesday, Agriculture Minister Edwin Poots said that the west could not tolerate Russian actions in Ukraine, but that it is not without consequences.
“I have absolutely no doubt that the sanctions imposed on Russia will lead to the availability of nitrogen being more challenging,” he said.
The advice to farmers from the trade is to get product bought and into farmyards, as there is now little prospect of prices easing in the short to medium term.
Quotes this week have remained steady, with CAN at £590 to £620/t, and urea around £780 to £860/t.
Compound fertilisers such as 27-4-4 and 25-5-5 are priced around £660 to £680/t with products like 16-15-15 and 15-15-17 at similar levels.
Outlook
With Russia supplying 40% of Europe’s gas requirement and 25% of its fertiliser needs, the growing list of sanctions placed on the Putin regime will restrict supply chains to the west, sparking concerns about future availability.
Feed
The situation in the feed trade is also increasingly uncertain. While most local rations escaped a price increase during March, there are some significant concerns about prices later in the year.
Spot markets for grains are volatile, with feed barley jumping to over £320/t mid-week, up £40/t in the last seven days. The trade now has to contend with new logistical issues with Russian owned boats unable to dock in UK ports. Some importers will only issue a price for wheat and barley when an application is made to purchase.
Fuel
Meanwhile, crude oil surged to US $113 per barrel mid-week, driving the price of red diesel to 85p/litre, a rise of 20p/litre from the start of the year.
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