Higher than anticipated gas prices are helping keep fertiliser prices high. AHDB data shows nitrogen fertiliser prices climbed again in March, making it the third month in a row they have risen.
UK-produced ammonium nitrate (AN) with a 34.5% nitrogen content averaged £380/t for spot delivery. This represents an increase of £13/t compared to February and £41/t higher than the same period last year. Imported AN came in slightly lower at £377/t, but still up £8/t from February and £35/t higher than last year. Other fertilisers, such as UAN, MOP, and DAP, also saw price increases, though modest compared to AN. Granular urea saw a slight decrease of 1%.
Although natural gas prices have eased since reaching recent highs in January, they remain high compared to historical averages. On Wednesday 23rd April, UK nearby natural gas futures closed at 83.6p/therm, down 36% from January, but still above the April 2024 average of 72.2p/therm.
The drop in gas prices is mainly due to forecasts of milder weather, which is expected to lower heating demand. Concerns about refilling EU gas storage are also easing, with levels currently at 37.5% full (Gas Infrastructure Europe) after heavy withdrawal during winter. Increased imports are expected over the next months to help hit the required target before November.
Other factors keeping prices high are that some manufacturers cut back on production when energy costs were higher, causing a temporary shortage. Furthermore, export restrictions and currency fluctuations are also contributing.
The AHDB expects fertiliser prices to fall if gas reserves build, but advises growers to monitor price trends closely.
