It seems that farmers will be paying more next season for fertiliser based on the movement of international fertiliser prices in the past few months.

Despite the fall-off in crude oil prices, (touching $60/barrel), nitrogen prices have increased the most, driven by tight supplies of ammonium nitrate (a component of CAN) globally.

Europe

The European ex-factory price for CAN is up almost €50/t on this time last year. Locally, CAN is now retailing at around €300/t for big bags delivered. However, some merchants are refusing to quote prices saying that it is “not available” at present.

Phosphate prices are also up with the international price of DAP up €50/t.

Global potash prices are up €30/t. Sulphur supplies are also expected to be tight this season with premiums of €10/t to €15/t for fertilisers containing sulphur expected – double the usual premium.

International traders are blaming tight global supplies and strong demand, driven in part by strong global grain prices for the price increases.