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

Urea

Some confusion over urea prices is evident in the UK. Replacement values now stand at about £305/t delivered to farm, but small stocks in some areas are being sold for less. As stocks reduce, prices are likely to move higher in the short term, but cheaper oil prices will eventually filter through to production costs. Prices could ease before the application window closes in May.

The arrival of a large Chinese granular vessel in Liverpool, the first into the UK, has clouded the waters somewhat. Its cargo is starting to find its way onto farms in certain areas. No reports on quality have yet been received, but Gleadell will continue to offer product from recognised areas and has product available for February and March delivery.

Ammonium nitrate

European ammonium nitrate markets continue to strengthen. CAN prices in Germany and France rose again this week ahead of a planned factory closure in late February for annual maintenance. This decision is likely to keep AN supplies in Europe tight as we enter the usage period.

In the UK, GrowHow also increased nitrogen and nitrogen + sulphur prices. Imported AN values are also moving higher as new material arrives. Haulage is now becoming a huge problem, so our advice remains to place orders sooner rather than later.

Sulphur

Sulphur + nitrogen will often be the first application – the importance of applying sulphur is well documented. Gleadell has imported two grades of ammonium sulphate to cover this early demand;  a 2-4mm standard grade or a 2-5mm premium grade. Both are high quality and priced very competitively on a pence/kg value and are available for February delivery.

NPK/PK

The phosphate market continues to firm as reflected by NPK and PK blend values in the UK. A number of the smaller blenders have now run out of product for February as they await new vessels. Prices will continue to increase.