After today, August 31, the end of the fertilizer season is a fact. What can the fertilizer market expect in the remaining months for the trade in fertilizer processing agreements and for the development of fertilizer prices?
The 2017 manure season came to an abrupt end because a significant amount of rain fell in many places in the Netherlands. Only a few seem to escape the dance. As a result, not everything could be completed according to plan.
As a result, storage in manure silos had to be used early. And that wasn't exactly the intention, but the weather simply cannot be controlled.
Disposal of manure will become more expensive
Livestock farmers who still gambled on some leniency from intermediaries are in for a rude awakening. They know one thing for sure and that is that more will have to be paid for the disposal of manure. According to insiders, not all livestock farmers were aware of the fact that spreading liquid manure will no longer be possible from September 1 this year.
For some, the date of September 15 was etched in the memory, caused by seasons in which postponements were requested and granted. No initiatives have been taken to this end this year. The collection contributions have been able to maintain their level in the last week before the winter season and, as the flag is currently hanging, will increase in the coming weeks. This is due to the costs of storage.
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The collection contributions of the past period.
Trade in manure processing agreements
The trade in manure processing agreements is slowly coming to life. It is somewhat surprising that so little trading has taken place so far, apparently with the idea that this could be favorable from a price point of view.
Yet the question remains whether this view will become reality. After all, if all trading has to take place in a short period, this will undoubtedly have consequences for price formation. Especially now that the processing percentages have been further increased.