Fertilizer sales get off the ground late

The additional demand for fertilizer is mainly driven by the short period left to spread manure. For example, winter wheat may now be too developed to spread slurry over. It also requires patience to wait until the soil is strong enough to apply manure before planting potatoes. 

Late spring causes farmers to postpone their spring work, which also delays the purchase of fertilizer. Many arable farmers have built up a stock of fertilizer at an early stage. As a result, demand from traders was already high early in the year.

Lower stakes
Although some traders talk about a decline in fertilizer prices, others strongly contradict this. It is a law that prices are lower at the start of the season than at the close of the old season. According to traders, it is therefore still too early for price drops.

Around this time last year, the price of fertilizer was already reduced slightly to reduce the stock. The trade is currently more confident. For KAS (lime ammonium nitrate) between €19,50 and €21 per 100 kilos is paid in mid-April, depending on the supplier. Regarding urea (30% nitrogen), approximately €16 is paid per 100 kilos. An increase compared to a month earlier, when around €15,50 per 100 kilos was paid. These prices do not include transport costs.

International stabilization
On the international markets, the prices of nitrogen, phosphate and potash have been rising for a long time. However, stabilization is now visible. Nitrogen prices in particular are faltering, after a strong increase. Nitrogen was the main price pusher for a long time. The average nitrogen price for 2017 increased by 10% compared to 2016.

Traders are noticing an increasing demand for more specially formulated and delayed-release fertilizers. This is because these fertilizers can save work and have a better environmental profile due to the delayed release of nitrogen.

Although prices for KAS are increasing, the price is not extremely high.