For the third month in succession, imported AN (34.5% Nitrogen) has seen a reduction in value.

The latest GB fertiliser prices up to December 2023, saw imported AN quoted at £354/t – down another £5/t from November’s value.

Year-on-year, December’s price is down 49% from December 2022, which was quoted at £700/t. However, it remains higher than December 2020 at £217/t.

The main reason for the fall in value is the price of gas, which early January saw nearby UK natural gas futures close at 77.13p/therm, which compares to 171.3p on the same day in 2023. Values have also fallen 30% on the month compared to early December prices.

Domestic futures have fallen in line with prices on the continent. European gas prices are at their lowest levels since August, despite a cold snap, with large reserves looking to see the winter through.

As of early January, EU storage stood at 83% according to Gas Infrastructure Europe. Norwegian gas flowing into the continent, plus slow demand, has pushed prices lower over recent weeks. With such strong reserves, this will likely keep prices subdued for natural gas short-term, according to a report from AHDB.