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

Urea

Interest in urea is building in the UK with tonnes being traded at a significant discount to global replacement prices. The weakening of the US dollar this week continues to raise the price of imports, but importers are keen to move existing stock from port-side stores.

Urea is available on farm for the equivalent of about 61p/kg N, compared with 76p/kg N for imported ammonium nitrate (AN) and more for UK AN.  That, and the ongoing cool temperatures that are ideal for urea, means there is certain to be a degree of switching.

Ammonium nitrate

There are two very separate markets in the UK priced at least £20/t apart. GrowHow prices are holding firm as Yara Europe continues to raise values, but imported prices are under pressure. Shipments are continuing to arrive, but applications are 2–3 weeks behind normal, which is slowing demand. Importers are trying to restart the market, leading to some very reasonable prices for immediate delivery.

NPK/PK

The NPK/PK and straights market has come under pressure this week. Blenders are competing in a quiet market and are struggling to keep prices at a level that will cover replacement raw material costs.

Phosphate and potash prices have risen, but on-farm values have dipped again, encouraging some uptake. The worst of the logistical problems have passed, but most suppliers are still unable to deliver immediately after receiving an order – blenders have moved to April deliveries.