Farming News - Fertiliser market update from ADM
Fertiliser market update from ADM
Calum Findlay, ADM Agriculture’s head of fertiliser, comments on the markets
Granular urea prices have moved to a nine-year high in the US. Freight issues have caused shipping delays with serious concerns about timely interior distribution in the aftermath of Hurricane Ida.
India has still to tender, but it will arrive soon as the country has 5mln t to buy between now and February.
For previous UK campaigns we have always had the option to ship urea from Algeria. However, following Brexit, we have no agreement in place with the country, so we only really have Egypt as an option in North Africa.
Prices there have moved up by over $30t this week as buyers return in Europe and South America.
Freight is also proving to be a major concern. Last year, rates of $23-24/t were quoted to ship product from Egypt to Immingham. Today they are nearer $60/t.
AN producers across Europe are now having to pay record prices for gas, the main feedstock. The fuel now costs more than oil per unit of energy for the first time.
CF has been sitting out of the UK market for almost a week. It and other producers have major concerns about gas storage. The fear is a cold spell in November/December could see gas prices spike a lot higher.
The whole nitrogen complex looks well supported and many areas still have a huge volume to buy.