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

Granular urea

The market has continued to receive support from rallying US prices and increased demand from other northern hemisphere markets now starting to surface.

Gas supply problems continue in North Africa and trades this week have seen increases of over $20/t since December. That, coupled with currency changes, has seen UK farm prices rise to over £300/t. Any potential reduction due to falling oil prices is highly unlikely, given the huge amount of business still to be concluded. Gleadell continues with its import programme and can still offer some tonnes for Feb/Mar delivery.

Ammonium nitrate

Many European producers increased nitrate prices yet again last week. More rises are  forecast in the coming weeks as the market continues to tighten. In the UK, GrowHow can offer some tonnes for January delivery, but it is likely the company will shortly move to February terms. Values for imported material are also set to increase as previous positions are cleared and suppliers move to replacement levels for Feb/Mar delivery.

Phosphate and potash

Phosphate and potash markets remain firm globally. In the UK prices are rising quickly due to high demand. Blenders have sold out of January product and have already moved to February pricing, putting further pressure on delivering high volumes onto farm in time for spring use.

Fertiliser delivery warnings for spring

We continue to warn growers that the remaining market tonnage to be delivered to farm exceeds maximum capacity for the UK. Blenders have already sold out of January tonnes and with imported shipments arriving late there will be a lack of haulage to execute all requirements. We suggest fertiliser should be ordered in January to avoid disappointment or late application.