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

Urea

Global levels are stable to firm this week with minimal business concluded for a second week running. Egyptian urea trades have moved marginally over the past 10 days, with August tonnes being booked at about $2-5/t above last trades.

Traders are committing more Chinese granular urea as availability tightens. UK demand has now slowed as the build-up for harvest is upon us. Spot values for port stock positions represent an excellent opportunity compared with replacement levels for Sept/Dec. In our opinion, taking a percentage of urea requirements in July/Aug seems a sensible option as typical price trends suggest levels will increase from September onwards.

Ammonium nitrate

Ammonium nitrate remains unchanged for both spot imported and UK product.  Values for September look set to increase by £3/t.

P & K

Autumn demand for phosphate is building with values currently the lowest for the year. Currency movement has helped reduce prices into the UK this week, providing UK farmers with a good buying opportunity. The world potash market is flat, with limited news and values unchanged. This is the low point for MOP demand through the year and values will firm towards the autumn.

Alzon

Values for Alzon 46 are currently unchanged, as it is a German manufactured product, coming from a stable domestic market. This has reduced the “premium” over standard granular urea, making Alzon 46 an interesting option. Delivery post-harvest, improved cash flow and reduced storage are real benefits of this product.