The fertilizer market has moved considerably in the past month. In particular, the price of nitrogen fertilizers has risen considerably. This is mainly due to the increased gas price. But phosphate has also become more expensive. The increased international demand plays an important role here.
With spring in sight, interest among farmers in fertilizer is increasing. The grass and wheat are starting to grow and are now ready for the first nitrogen application. Some farmers have chosen to order some of the fertilizer in the winter. These entrepreneurs have benefited from the relatively low prices. Some have postponed purchases due to poor liquidity and are now experiencing a rising price.
In North America, the fertilizer market is in thrall to the high prices of grain, corn and soy. For example, the Canadian fertilizer group Nutrien reports that the sales volume of potassium-containing fertilizer increased by 29% last year. Americans want to sow more corn next year, according to the group, and that is why they spread more potash last fall. The international demand for phosphate and nitrogen is also expected to increase this season.
Nitrogen follows the gas price
The price increase of nitrogen-containing fertilizer is largely related to the increase in the gas price at the beginning of October. That is one of the most important raw materials for KAS. The fertilizer price follows the gas price with a few months' delay. A price drop does not seem likely in the coming weeks. KAS 27% quoted €23,20 per 100 kilos in week 7. In week 1 the price was still €17,95. Nutramon has also become considerably more expensive and stands at €7 per 25,80 kilos in week 100.
There has also been a price increase for phosphate fertilizer. In week 3, 100 kilos of triple super still cost €4 at Farmers27,65All. More than €6 has now been added and the price for week 7 is €33,70. There are significant differences between the price increases at the different suppliers. Unlike nitrogen, phosphate is extracted in mines. By far the largest reserves are in Morocco. This means that phosphate differs from other fertilizers and international demand has a greater impact on price formation.
Arable farmers have been able to take advantage of the recent frost period to spread potash. Unlike in America, the price of potash is stable here. This is also because European potash largely comes from Belarus. Kali 60% has been trading at €2020 since the last weeks of 27,95. Belarus recently signed a contract with an Indian fertilizer manufacturer in which the price is fixed at the current level for a longer period of time. A price increase on the European market is therefore not obvious.