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

Urea

Global urea values remain firm this week as another tender is underway to set the next benchmark for price direction. Indications after first round bids suggest values around £320–325/t delivered to farm.

In the UK, however, the market, although quiet, has been trading at about £10/t discount to these replacement levels. As field conditions hopefully dry out across the UK, application should be imminent and the next flow of late purchases will be upon us as demand increases across Europe. Urea currently represents great value for money.

Ammonium nitrate

The ammonium nitrate market is quiet both globally and in the UK. After the surge in ammonium nitrate purchasing in January, things have certainly calmed down with positions covered for the short term. In the UK, imported prices are trading at about £285–295/t delivered to farm with domestic product trading at a £10/t premium.  Unfortunately after some terrible weather in the UK, demand has slowed down but we do expect this market to pick up once things dry out.

Phosphate and potash

After an extremely busy period the phosphate market shows no sign of slowing down. Demand from both the US and Europe continues to firm values with DAP in short supply. Potash prices are also now showing signs of strength and price rises are likely to take effect as spring demand increases.