Most crops have had the basic (fertilizer) application. According to most traders, the large bulk fertilizer has now been delivered. Now mainly smaller quantities are supplied for the over-fertilisation, insofar as they are not yet in stock at the farmer.
This year, livestock farmers are cutting grass later with the first cut, which means that the fertilizer application for the second cut is also a few weeks later than last year. In arable farming too, over-fertilization of many crops is probably later than in other years due to the cold spring.
Stabilize prices
The fact that the demand for fertilizer is declining somewhat is not reflected in fertilizer prices. Nitrogen and phosphate-containing fertilizers in particular have risen further in price in recent weeks. Prices now appear to be stabilizing.
The price of nitrogen fertilizers is strongly related to the price of natural gas. Gas has become considerably more expensive since October 2020, which affects the fertilizer price with a delay of approximately 2 months. The phosphate price appears to be mainly driven by strong international demand.
Maximum yield
Especially due to the high corn prices, growers want to maximize yields. To achieve this, they are prepared to invest more in fertilizer, for example. This is especially the case in North America, where farmers often still have manure space. In large parts of Europe, the maximum permitted legal fertilizer use space is already used, even in years with lower grain prices.
The price for KAS 27% was €18 per 26,90 kilos last week (week 100). At the beginning of March this was still €23,20 and in the first week of January it was still €17,95 per 100 kilos. This means that the price of KAS has already risen almost 50% this year. Nutramon follows the same price development and amounts to €18 per 28,90 kilos in week 100.
Prices for phosphate-containing fertilizers have increased slightly in the first weeks of 2021. At the end of March, the phosphate price took a significant step upwards. Tripelsuper 45% has increased from €33,70 per 100 kilos in March to €44,70 per 100 kilos in week 18.
Potassium 60% is an exception in the fertilizer market. The price of this has also increased, but this price increase is much more limited than with other types of fertilizer. Kali recorded €18 per 28,20 kilos in week 100. That is a price increase of €0,25 since the beginning of this year. Compared to a year ago, the price has even fallen considerably.