Calum Findlay, Gleadell’s fertiliser manager, comments on the markets

Urea

International prices continue to trade sideways as buyers hold off and a small correction now looks possible.

Egypt is producing at maximum capacity on all lines so tonnage remains unsold for February shipment. Rather than commit to more tonnage, longholders in Europe prefer to liquidate stock and watch market developments. UK stocks of urea are at an all-time low.

Ammonium nitrate

Product remains in extremely short supply throughout Europe, particularly in the UK where the currency exchange rate makes this country an unattractive option to European producers.

UK prices for February and March are £15/t below Europe. CF prices for February delivery have been withdrawn and new terms will be announced in the week commencing 13 March. Once applications start there is still room for further price rises.

NPK

Internationally, phosphate markets continue to firm and, as buyers return to the market, similar price rises on MOP can be expected. All pricing is expected to remain firm throughout the first quarter. With nitrogen prices following suit, growers should consider covering all NPK requirements.