The bottom price of fertilizer has still not been reached and the limit of 30 per 100 kilos of KAS is not far away. That while demand has increased recently and the price has already dropped drastically compared to earlier this season.
The price of art continues to fall. While there was previously speculation about a bottom price of €40 per 100 kilos, that price level is long gone. With the increasing demand due to work on the plots, the virtually stable price of natural gas and the already significant price drop, you would say that the bottom price must have been reached, but nothing could be further from the truth. Prices continue to fall due to oversupply and cheap ammonia.
Demand continues to lag behind
The start of spring work is clearly visible in fertilizer sales. The demand for fertilizer, especially KAS, increased in both Europe and the Netherlands. Many farmers waited until they actually needed the fertilizers before purchasing. It should be noted that they only purchase what they thought they needed at most. As a result, demand still remains meager compared to other years and total sales this season are still far behind.
The time of sharp declines of several euros per week is over, but the difference with a month ago is still considerable. Farmers who postponed their purchases as much as possible have still managed to benefit. Famers4All is now recording €17 per 33,60 kilos for KAS this week (week 100), delivered in a 600kg big bag. 5 weeks ago that was still €39 per 100 kilos. Kali60 has also fallen slightly to €74,80 per 100 kilos.
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Global market
A different picture can be seen on the global market. Urea fertilizer has risen slightly on the global market in the past 3 weeks. This was mainly due to increased demand in the US, where farmers purchased heavily as the growing season started. Urea prices also rose slightly in India. This increase now appears to be a thing of the past and the price of urea, the most important nitrogen fertilizer in many parts of the world, has remained stable and has even fallen slightly. According to trade, there does not appear to be a new increase due to the supply and demand in the world. The supply is large, while demand lags behind in Europe and Asia. This development ensures that the prices of nitrogen fertilizers remain under pressure and that a price increase is not likely.
Potassium fertilizers also continue to decline in price on the world market. This is because India has significantly reduced the potash price. In Europe there has not yet been the same major price drop, but it is happening in small steps. Farmers were reluctant because of the higher prices. The supply of potash fertilizers has increased further in Europe.