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

Urea

Global market prices continue to receive support thanks to China’s refusal to lower prices to compete in the last Indian tender. This has limited new business.

Values look set to remain firm now for the next 45-60 day period and could remain so until September / October. The UK has seen very little urea cover taken in the forward positions – the new-season focus will be on ammonium nitrate in the weeks ahead.

Ammonium nitrate

Values for immediate delivery in the UK have been forced lower as pressure to clear imported stocks intensifies ahead of potentially lower new-season prices. This has provided an opportunity and some relief for many farmers who have delayed buying their final tonnes.

Imported AN prices have moved lower for June and pricing suggests manufacturers intend to make an aggressive start. It is possible that values may not fall as much as many hope, but if they do start below last season’s minimum levels then growers should cover a percentage of their requirements in the June / July window. GrowHow, the UK’s only producer of AN, remains the key factor in determining where new season price levels will start.