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

Urea

Major global markets remain firm for spot granular urea following higher offers into Brazil and Thailand.

UK prices are being offered below replacement values as stocks are cleared. This presents an opportunity to pick up any final top-up tonnes at extremely competitive prices.

Over the past week several importers have taken speculative views on the forward market. With FOB levels at a five-year low, buyers are targeting on-farm prices below last season’s levels, but the weaker pound/dollar exchange rate compared to last year has, so far, prevented this happening.

Volatility will remain; while there is a possibility that this market could ease again in Q3 we are currently seeing a firming market as international buyers return.

Ammonium nitrate

In the UK, pressure on importers to clear stocks ahead of a price reset is mounting. However, with demand likely to continue throughout May, prices are highly unlikely to change in the short term.

Demand continues in the eastern arable sector and we have seen enquiries start to surface from grassland buyers in the west, later than normal due to the long cool spell delaying the need for applications.