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

Urea

India is set to tender for about 2 million tonnes of urea. This, coupled with short covering of sales into Europe, is driving up price expectations for Egyptian producers. North African values have firmed by $10/t in the past week, equating to a £7/t rise in UK farm values. Current stock positions are giving growers some discount to full replacement value, but will only be sold off once.

Ammonium Nitrate

There has been strong uptake of GrowHow Nitram for the November to January delivery period. With AN values equating to around £40-55/acre for arable growers, against current forward values for wheat and oilseed rape, the opportunity to lock in a margin is definitely there.

Phosphate

Improved trading conditions and post-monsoon demand in India is producing a vacuum for product. Phosphate from as far North as America has been sold into India. On a UK basis, there has been little change; values will be dragged by world demand, as North African and Russian producers will all seek at homes further afield.

Potash

International confidence in potash values is starting to grow, with UK values still trailing along the bottom. The Russian potash saga has disappeared from the news, with background peacemaking and deals going on. Brazil is a buyer of Russian and UK potash, at values equating to £270/t delivered farm bagged, a value we are currently trading below.