Market update - September
Fertiliser
The North African Urea prices increased last week and globally adjusted up by $18 – with further increases expected in the coming weeks.
Natural gas prices are also increasing from the lows seen in August – increasing the cost of production.
After the Saudi oil plant attack – oil prices had initially increased by 20 per cent in first moments of trading this morning – which will increase the cost of transport of fertiliser by ship/lorry.
With the political impact on our currency and the potential for import tariffs, we advise all growers to take some cover of their fertiliser requirements as soon as possible
With the rebound in the Urea market, coupled with tight supply of ammonium nitrate in Europe, we could see CF increase their forward prices of Nitram and NS. With a comparable performance between Ammonium Nitrate and Limus Urea, we recommend taking some Limus Urea into stock for risk mitigation.
For more information please contact the fertiliser department on 01243 755630
Feed
Proteins- Soya prices have come back over the past week despite what was on the face of it, a bullish USDA report on Thursday. USDA ending stocks and yield estimates were both lowered, however, export commitments have fallen enough to counteract these figures. Sterling has also reached a 2 month high against the dollar with renewed hopes of the UK avoiding a ‘disorderly Brexit’
Rapemeal prices on the other hand have turned and begun to rally. There are still concerns regarding the Australian Canola crop which will mean the Ukrainian rapeseed which is being exported to plug the UK rapeseed gap, may then stop and pinch come Christmas.
Energies/Fibres- Imported sugarbeet continues to look better value for the winter than soya hulls. Maize prices continue to ease with more optimism on the state of the global crop.
Fats and Minerals- Bartholomews can offer our own bespoke mineral range as well as other traditional straights such as limestone flour, Sodium Bicarb and Urea.
We also have C16 and Calcium Soap products available. These products are priced extremely competitively against other branded equivalents and with current high feed costs, these products begin to look more appealing.
Kayleigh Johnson, Feed Manager Tel 07884 657380/01243 755752