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

Ammonium nitrate

Attractive GrowHow terms have encouraged many growers to cover at least some of their new season requirements.

High demand for June tonnes is evident and GrowHow may move onto July/Aug terms shortly, with a planned price increase already in place.

Taking tonnes in the short term could be a cheaper option than delaying purchasing.

Imported AN has also seen high demand as many importers have already sold out for June and July delivery.

The Achema plant in Lithuania has a timely shutdown planned for August. Prices are then forecast to firm further.

Urea

Global markets continue to look firm for June/July with the most recent business concluded at $320/t FOB Egypt, equating to an on farm UK price of £275/t.

Expectation is that new urea plants will come online as we enter Q3/Q4, these supply improvements may then offer a reason for a correction in the market but with no guarantee.

Urea is on the sidelines with all focus firmly on Ammonium nitrate.