September 29, 2022

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Most farms are not supplied with fertilizers

Most farms are not supplied with fertilizers

As we well know this week, the situation in the fertilizer market – especially nitrogen products – has been completely destabilized. What is the mood of the market?
  • Most farms are not supplied with nitrogen fertilizers.
  • Farmers agree that the current price of fertilizer is far from reality.

I entered NPK at the last minute

NPK fertilizers go to the first “fire”. Unfortunately, there isn’t a lot of good news here either. Significant delays in the delivery of compound fertilizers add to rapeseed problems. Fertilizers ordered at the beginning of July only reach the farms. Some rapeseed growers have not yet received the goods required for pre-fertilization. Not wanting to wait for delivery, some farms start planting without fertilizer. This one will be topped up. Several “multi-ingredient” orders placed in early July/August for last-minute cereals will also arrive (we received this information from distributors).

How does it look affordable? In the case of full truckloads, most distributors do not provide prices at the moment because the merchandise is not available. However, the latest assessment of the Polifoska 6 was about 4,600 PLN. At points – where retail quantities are sold – prices are higher. There are companies that have NPK on the spot, but farmers report that some of them do not intend to sell at the moment. Is it an expectation of a higher price? We can buy NPK fertilizers at some companies from the yard, but at exorbitant prices. Polifoska 6 already exceeds 5000 zlotys / t. This means that giving 200 kg of this fertilizer for oil seeds costs 1000 PLN/ha. It’s no wonder some farmers are giving up on multi-ingredient fertilization, which we hear so often. While fertilizers are also used on rape, not necessarily on grain. Especially in rape cases.

Mixing with nitrogen – it’s hard to buy anything

The situation with nitrogen fertilizers is not so interesting. In fact, no one expected the market situation to lead to a drastic restriction or suspension of production already in August. Little Nitrogen farms bought. Merchants receive many inquiries regarding the availability of goods and prices, but they part their hands – there is nothing for sale and it is not known when the goods will be available (at least in the case of full truckloads).

On the other hand, the drivers who transport fertilizers to farms say that factories have huge amounts of fertilizer. Perhaps it is a pre-ordered product that was produced only for those orders? Or maybe it’s a stock of goods and we’re not really threatened by a fertilizer shortage in the market?

Regardless of the answer to this question – there is a lot of confusion in the market. Salespeople report that customers call and express a desire to purchase at least part of their spring requirement. However, when they heard that the nitrate of rock salt reaches 5,000 PLN / ton, they resign from these decisions, because the farms simply cannot afford such an expensive fertilizing.

automatic rock salt new car price

Some farms forgo shopping at this point. Automatic rock salt – if there is an offer – is an account of about 120 thousand PLN. zloty. In turn, a farmer tells us that he is changing the fertilization strategy. In this season, rock salt is abandoned in favor of urea, since the purest component is the cheapest (PLN 10.50 / kg N). Nitrogen is much more expensive in calcium ammonium nitrate, calcium ammonium nitrate or UAN. Here, however, the approach to fertilization must be changed – the starting dose must be given early. Urea is still available in many companies, but it is imported from Egypt. Prices for urea with inhibitor hover around 4800 PLN, without inhibitor PLN 4600 / ton (but this can only be used for foliar fertilization). Prices do not include the cost of transportation from the port where the goods will be unloaded.

It’s hard to say what the situation will look like next. Is rock salt at this price worth buying? of course not. This is not a real price. The only problem is whether it won’t be a limited product. The same situation applies to compound fertilizers. We will monitor the situation in the fertilizer market on an ongoing basis. However, no one can predict what the coming days will bring in the fertilizer market.

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