Most fertilizers in the Netherlands are currently more expensive than last year, but that is not the case on the world market. There, fertilizer prices are actually falling, although this is only expected to provide an advantage for the farmer in the longer term.
Fertilizer prices are relatively high in the Netherlands. For Nutramon-KAS (with 27% nitrogen) almost €26 per 100 kilos is paid (in bulk). This price level has been maintained since the beginning of this year and is almost €3 higher than last year's price. The Kali price (Kali 60) is also higher than last year at more than €33 per 100 kilos (in bulk); then an average of €31 was paid.
Global price drop
In contrast, on the international urea market a price drop has started, causing the price of urea to fall by 2018% since November 20. This is evident from data from analyst firm ICIS. Despite the fact that prices are falling so much, few are being sold. This is partly due to a decrease in demand from the United States and Australia.
In addition, China has increased production of urea and more urea was supplied from Iran than expected. The decline is therefore not surprising; an imbalance has arisen between demand and supply. The oil price also fails to rise. The price is now hovering around $67 per barrel of Brent, which is clearly lower than the cost of 1 barrel of Brent last year.
The fact that the global nitrogen market is showing a decline, while prices in the Netherlands are still relatively high, can easily be explained, according to traders. Although farmers currently use a lot of fertilizers, these have already been purchased by the trade in time. They want to have sufficient stock when the farmer needs the fertilizers. However, this did mean that higher prices were paid at the time.
Waiting is rewarded
No price drop is expected for the Netherlands in the short term. Normally, when France has finished the first fertilizer application, prices in Europe are reset; this is expected to be a price drop. Those who can afford it would be wise to wait a little longer before making purchases until the price drop has been implemented.
However, the above does not apply to the price of potash. This is currently trading fairly steady, Triferto reports. However, the price will show a slight increase in the short term from €3 to €5 per tonne. The expected increase in demand makes producers believe that prices can still rise further.