Prices for nitrogen fertiliser are on the rise with the latest quotes jumping £15 to £20/t when compared to price listings at the start of January.
Quotes for CAN are up £20/t with reported prices running from £310 to £320/t at merchants taking delivery of new stocks.
However, where buyers can make full payment on delivery, there is scope to secure CAN closer to £305/t. CAN plus sulphur is trading north of £330/t.
Urea prices have edged above the £400/t barrier, although again, where payment can be made on delivery, there are deals being struck at £395/t.
Increase
After a quiet autumn for sales, merchants report a brief surge in buying demand in December from dairy farmers on the back of improved milk prices.
Deals to clear old stocks of CAN ranged from £290 to £295/t, with urea trading close to £380/t.
Despite the latest price rise, quotes are currently lower year-on-year as CAN was trading from £320 to £330/t last January with urea in the region of £410/t.
The outlook for early spring is that another £10 to £15/t price increase is likely, but that nitrogen prices should settle thereafter.
Demand
Sources within the fertiliser trade indicate the latest price rise is partly down to the rise in grain prices in recent weeks, as well as an increase in planting of winter cereals in late 2024 across Europe.
With winter crops well established, cereal growers are eager to purchase fertiliser to feed crops.
Livestock feed
The uplift in grain prices is causing some concern within the feed trade, leading to speculation of a £5 to £10/t increase in ration prices next month, particularly for feeds with a high cereal content.
On spot markets, rolled barley has risen £10 to £15/t from last month and is now costing just over £230/t delivered on farm.
Maize has seen a similar increase with quotes for on-farm delivery running between £250 and £255/t. However, soya appears to have avoided the latest price hikes and remains steady around £360/t.