Commodities Update April 2021
Over the last month the pound weakened slightly, -1.5 cents, against both the dollar and the euro. The weakening in the pound is mainly off the back of the concerns over the AstraZeneca (Oxford) jab and its incredibly small risk of blood clots. Despite this, the UK is still charging ahead of most of the world in relation to vaccinations and beginning to see the benefits over reduced cases.
Oil (Brent Crude) has fallen $5/barrel over the last month but is beginning to see a slow recovery on these losses.
Since the huge (+15%) increase in GDT last month the last two auctions have seen a small loss (-3.8%) and followed by a small gain (+0.3%), which is seen as a correcting of prices and not unexpected after such a big gain. Good opening prices for the coming season are expected in the Southern Hemisphere on the back of strong GDT results and continuing demand for product.
Depending on supplier there has been an increase in powders this month on the back of GDT rises last month.
All feed prices over the past month have seen a small increase compared to a month ago, there is nothing “cheap” in the market.
Fertiliser prices, particularly phosphate prices, continue to firm due to worldwide demand.
As per usual the UK is behind the rest of the world in seeing these prices but domestically DAP is currently trading around the £450-460/t, with replacement prices on the world market currently £500+/t. With the price rises in DAP using a specific maize starter fertiliser maybe the cheaper option this year, and potentially quicker delivery, if you have not yet organised anything.
With deliveries still tight please think about your future fertiliser requirements sooner than later, do not expect deliveries quickly. For example, I have already taken a position for DBL on Aftercut fertiliser to try and ensure delivery when required at the beginning of May.
If you are interested in knowing more about the Aftercut offer, or maize starter fertiliser, we currently have available then contact myself for more details.
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