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

Urea

• Last week 3 mln t of urea were offered into the latest State Trading Corporation of India tender as China accepted lower prices to secure around 50% of the business.
• Egyptian production has resumed albeit slowly, so to date there are no sales reported either domestically or for the export market.
• Demand in the UK remains slow but with less than 50% of the expected market demand covered, a busy period is forecast once autumn drillings are complete.
• Urea prices are at historically low levels, much cheaper than where many growers purchased last year. On a £/kg basis they offer an excellent buy.

Ammonium nitrate

• Across Europe AN remains tight as demand is picking up and producers catch up with back shipments after annual downtime.
• Demand in the UK today remains flat with product in store, so prices have been held at current levels to tempt buyers to take tonnes in the nearby position.
• GrowHow is catching up on its Aug/Sept deliveries and will be targeting new business as we enter October.

PK

• Replacing soil nutrients after harvest is essential, especially in a year where good yields are being reported and some growers are trying to maximise margins by selling or utilising straw elsewhere, instead of returning this organic matter back into the seedbed.
• A typical winter wheat crop removes 8.4kg/t of phosphate (P2O5) and 10.4kg/t of Potash (K2O) (Source: RB209 Fertiliser Manual), Replacing these nutrients should be high on the list for all farmers this autumn as it is far more cost effective to apply and maintain indices rather than trying to rebuild levels once they have been allowed to slip.