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

Urea

Slower demand worldwide, partly due to falling grain prices, has caused granular urea levels to weaken, albeit at a slow pace.

Europe and the UK are still seeing some business being concluded but globally prices are slipping, especially in Brazil and the US. Gas supply still seems to be a problem in Egypt, where increased domestic demand is leading to a shortage of urea. This is believed to be a short-term problem with production starting again in the next three to four weeks.

Prilled urea remains firm after a floor was set by India buying surplus stocks in its latest tender.

Ammonium nitrate

Both imported and UK ammonium nitrate has traded sideways in the past week. However, a further increase is expected after last week’s price rises in France.  Indications for November shipments of imported ammonium nitrate follow this trend, although demand is minimal. With 40% of the UK market still to be done, buyers may emerge again over the next three weeks.

PK

In our last report, a number of factors were highlighted regarding an impending bottleneck that could seriously hamper spring deliveries onto farm. Gleadell can offer spring NPK grades for a range of delivery periods with finance available. Growers should consider locking in at least some cover at these levels.