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The first signs of a significant price cut on nitrogen fertiliser has emerged over the past week, with farmers in Britain purchasing 46% urea below £500/t for delivery in September 2023.
This would equate to a £360/t price drop on the same month last year.
However, while these price trends have been well received, there is little sign of any meaningful price correction on nitrogen before August.
Fertiliser manufacturers are reluctant to lower quotes to farmers before then, as they seek to offload existing stocks which they claim were produced over winter and did not benefit from falling gas prices.
The overwhelming majority of fertiliser use in Britain is in the arable sector.
Forward purchasing nitrogen for autumn delivery is common as it tends to match cashflow and ensure growers have new stocks for winter and spring planting.
Current prices
Currently, urea prices in Britain are similar to those at NI merchants, with quotes typically around £720/t to £740/t.
CAN stocked at local merchant yards is currently trading around £640 to £650/t with NPK compounds like 25-5-5 similar to the price quotes for urea.
Muriate of potash is also around the £750/t mark as is triple super phosphate.
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