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

Urea

Last week we saw some life return to the urea market as European demand increased and the latest Indian tender was announced.

Egyptian prices had continued to slide until a surprise sale at levels $13/t above previous trades created some confusion in the market. A further sale is now needed to give the market clearer direction, so everyone is being cautious.

Prilled urea has remained firm with significant demand expected to come from India and Pakistan, which could support even higher levels.

AN

GrowHow November terms will see a further £3/t increase and, with a further mid-month rise to come, UK AN prices will continue to climb.

Europe has seen similar increases with Yara’s 33.5% product up by €8/t in October on the back of firm ammonia costs. Imported products have followed the trend, with sharp prices rises supported by tight supply.

Current indications show no signs of a fall in AN prices and those waiting for one may be disappointed.

Phosphate

It is likely that we have seen the ceiling in the phosphate market. Prices have come under pressure, with European buyers sitting back, in anticipation that DAP and TSP prices will correct in the coming weeks.

In the UK, many blenders have refrained from re-entering the market for large volumes, buying top-up tonnage to supply a quiet market. However, some large farm enquires are beginning to come forward, suggesting growers are starting to consider spring requirements.