Fertiliser prices following Brexit
With the full impact of the Brexit vote still unknown, David Mitchell, Wynnstay Fertiliser Manager, looks at the immediate and possible long-term implications for the fertiliser market and farm businesses.
“We’d been enjoying a competitive new season price, but the outcome of the vote caused an immediate reaction, with terms being withdrawn from every supplier.
“However, we’ve started to see markets settle down already, and the FTSE seems to have returned to a steady level at the moment. The fertiliser market fluctuates generally anyway, but volatility, due to on-going and future negotiations, will be difficult to predict.
“With the Brexit vote, there’s now uncertainty which we haven’t been faced with before. And as a result, it’s likely that we’ll see August terms being withdrawn and replaced by slightly higher prices.”
Speaking on a positive note, David reassures buyers that prices remain competitive, “October prices for Nitram are £60/tonne cheaper compared to last year, and there’s a spread of savings for NPKs, of up to £42.
“So regardless of the impact of the Brexit vote, the benefits for buying at the moment are significant when comparing to previous seasons.
“Flexibility will be key going forward, and at Wynnstay, we use different suppliers so we’re able to mix and match business requirements. Having long established relationships means that, if there is an advantage in using different suppliers, we’re in a position to offer that to the farmer.
“Even with blenders withdrawing their prices, we can still ring them on a bespoke order-by-order basis, to ensure the best price is found.
“Currencies will fluctuate, and without a crystal ball, it’s difficult to tell what’s around the corner, but it might be wise to consider getting some of your fertiliser stocks sooner rather than later. If you need further advice, please speak to Wynnstay for updates.”