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

Urea

Urea markets remain supported in Asia this week as India bought more than 700,000mt product in the latest tender. Elsewhere, Egyptian markets are quiet and have moved down by $7-10/t.

Despite this, there is a huge demand to surface from Europe and North America during February and March. Values are likely to remain supported well into the spring.

In the UK, there is some confusion over the spot market for urea as Chinese and Russian product is now being offered at lower prices. However Gleadell continues to offer urea from recognised areas including Egyptian product for February and March delivery.

Ammonium nitrate

Ammonium nitrate demand is slow following the onset of a cold and wet spell of weather. Once applications start, demand will return.

Prices remain static for both UK-manufactured and imported product. Lithuanian AN is still arriving and being delivered onto farm at a £12-15/t discount to UK.

Phosphate and potash

Phosphate levels continue to firm with significant buying from India and Europe. However, in the UK phosphate levels continue to be squeezed as blenders and merchants compete for spring tonnage.

Blended NPK/PK products are being delivered onto farm at prices below replacement costs and this cannot continue for much longer – prices will firm as demand picks up.

We still urge growers to order fertiliser requirements as soon as possible. A significant percentage of the market is still to be covered; logistically a car crash is waiting to happen from mid–February onwards and deliveries will become an issue.