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

Urea

The global urea market remains firm, although business has quietened as buyers take time to adjust to new levels. The US has now bought a large percentage of its requirement and, after the rush to buy on a rising market, other global buyers have calmed down after securing tonnages for Feb/March.

In the UK, urea has increased by over £30/t since December but delivered-to-farm levels still do not equate to replacement values on the world market. In terms of units, granular urea at 70p/kg is the most efficient form of nitrogen and as ammonium nitrate continues to rise is currently the best buy.

Ammonium nitrate

The UK’s only producer, GrowHow, is withdrawing terms this Friday following more AN and CAN price rises in Europe. New terms are expected to follow next week.

Imported values are following, having firmed dramatically over the past two weeks as availability tightens to £285-290/t delivered to farm. Manufacturers’ suggested levels for April shipments are £5-10/t above today’s offers.

Phosphate and Potash

Both potash and phosphate continue to climb as UK stocks tighten. Potash is expected to firm a further £10/t over the next week as suppliers sell out for February deliveries.  Phosphates continue to firm with increased demand and new trades on the global market ticking up.