Calum Findlay, Gleadell’s Fertiliser Manager, comments on the fertiliser markets

New Season update

The World Fertiliser Conference in Sydney is now over and manufacturers and traders from all over the globe are considering their next move.

Indications are that the market is not as bearish as some thought going into the conference. Demand remains strong in most areas and although grain prices have weakened over the past few weeks they will still support fertiliser values in the coming months.

Larger manufacturers are expected to provide new CAN and AN prices in the next few days for June / July / August delivery. Having gone through a period where we have seen values continue to slide for several weeks, the general feeling is that a floor has been reached as the cost of production is now starting to look very marginal in some areas.

Manufacturers need to move significant tonnages once they have plants working round the clock. Starting at a lower price will always give them plenty of headroom to move values up once the market is up and running. One thing to always remember, however, is that we are in volatile times and markets can change direction very quickly. Farmers should consider a planned approach when considering their new-season purchasing decisions.