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

Urea

The global market has now entered a quiet time with many spot purchases covering nearby demand now concluded. Market participants are now sitting tight to review and take stock before deciding their next moves.

As discussed in our report last week, the forward market for urea, which has been heavily pushed in Europe at around $90/t below current replacement values, is looking ever more worrying regarding covering these positions at a profit. Volatility is a hallmark of the urea market and this will become apparent in the weeks ahead.

In the UK, spot urea is worth £290/t+ delivered to farm. We are still seeing some colder, moist mornings that are perfect for spot urea application, an excellent option at 63p/kg.

Ammonium nitrate

Big price reductions have been seen this week on imported nitrogen as long holders of AN are looking to liquidise stocks at a further £10/t discount to last week’s already reduced levels.

Importers are worried that they will carry expensive stock over to next season. However, there appears to be no rush on releasing any new-season terms for several weeks yet as both CAN and AN remain tight in Europe and demand is still strong in the grassland areas.

This means there is an opportunity particularly for grassland buyers to purchase remaining AN needs at lower levels for immediate delivery and application.

Globally, markets are awaiting new terms to be set so traders with June shipments are hanging on to see where the market goes.

Phosphates

Globally, the phosphate markets for TSP/DAP/MAP have dropped approximately $50/t over the past week. UK prices have reflected this downturn and blenders looking to clear stock have reduced values across all straight, NPK and PK products.