Fertiliser prices set to fall further

International fertiliser prices remain under downward pressure.

Traditionally manufacturers push price increases this time of the year ahead of the peak spring buying season.

However, the European trade is meeting increased buying resistance from farmers as commodity prices continue to fall.

Trade buyers are standing off buying from manufacturers, nervous of ending up with expensive stocks - a repeat of what happened in 2009.

There is a growing expectation that prices will fall further to reflect downward commodity price trends.

Urea prices have moved lower this week both in dollar and euro terms across many regions. French wholesale prices are now down by €116/t since last January.

Deals

CAN and AN manufacturers' official price quotes are unchanged from last week. However, deals are being cut at lower prices in an effort to move product. On the home front distributors are anxious to move stocks either direct to farm or to merchants yards.

Merchants and farmers are reluctant to commit on big volumes as prices move lower.

Competition for good business and volume orders has seen price quotes particularly to buyer groups move lower this week.

Granular urea bulk delivered farm was trading below €320/t this week, with top-lift tending below €340/t for keenest quotes.

Distributors and merchants are attempting to stand firm on CAN prices but prices are expected to go below €360/t over the coming days.

Fintan Conway is the IFA's national grain secretary