The latest fertilizer market report from Gleadell grain merchants reveals that some fertilizer types have risen to record highs, in line with projections from market analysts. The price changes are on Indian tender announcements and ongoing negotiations.

Nitrogen

Following an Indian tender announcement, Urea prices moved upwards this week to prices well above the peaks of 2011. The exclusion of Iranian Urea from the initial tender was quickly revised and their subsequent inclusion did appear to have taken some pressure off pricing. But, it is highly unlikely that Iran can satisfy the 1 mln t+ which is needed and so we expect another tender to be announced shortly. This, along with a tender in Pakistan and further demand from Latin America, will only help to support the market in the weeks ahead. June/July period is the maintenance season in Russia and the Ukraine so, with the factory problems and domestic commitments in Egypt, any correction in pricing is not in sight.

Ammonium Nitrate


This week has seen little change in AN prices in the UK, demand is still very strong in all stock areas in the west and likely to continue with a late spring. Having already seen a downwards correction in pricing during January/February, a further correction is unlikely with Urea prices as they are today. So the pricing on offer today for new season look a good buy at levels lower than last year.

Phosphates

Negotiations continue in India on their DAP contract pricing which is already at a much later time than normal. The market will continue to be nervous until the world’s largest buyer of Phosphate concludes and this decision will ultimately direct the market in the months ahead. Both TSP and DAP prices in the UK have firmed over the last week as buyers have returned to the market in advance of the new season. Prices today are still almost £100 tonne below last season’s highs, so like nitrogen some cover should be taken.

Sulphur

A more upbeat sentiment to the global market this week. Gleadell launched their new 'Granular NS' fertiliser this week, a granular compound containing 27.5N / 11SO3 / 6MgO in readily available forms allowing easy uptake by all plants. This 'little and often' approach to Sulphur and Nitrogen application will provide adequate supply of these nutrients at all the main growing phases and limit potential losses through leaching. Guaranteed as 95% 2–5mm, this is a high quality product and an excellent addition to the Gleadell range of fertilisers.

Potash


Demand is slow as spring applications are now almost finished. Producers continue to talk prices higher in the forward positions but buyers are resisting and remain cautious and very risk averse about taking any positions at higher levels. Demand will pick up, crop prices are supportive and producers are happy to sit out for now in favour of achieving higher prices.