Nitrogen

With harvest in full flow, the limited demand for nitrogen has persisted this week.  Urea prices remain firm.  Traders in Europe have covered shorts and, after the sharp rise in prices, many will now await the next move in the market before stepping back in.

Ammonium nitrate markets continue to firm elsewhere, as Russian and Eastern European demand increases, reducing any stocks that may be available for export. 

Yara has raised prices of CAN by $5/t in Western Europe and further increases are expected, firstly due to the firmer urea market and secondly in an attempt to discourage last minute buying, come the spring.

In the UK, CF has continued to hold terms, but we are not sure how long this will continue. At some stage prices will start to track upwards in relation to the situation in Europe, and this may even happen before UK demand resurfaces. Prices on offer today for October delivery still look good value.

Straights

Strong demand continues for DAP as many look to drill OSR over the coming week. Interest is starting to emerge for other straights and autumn PKs.

Potash prices have firmed over the past 10-14 days and, as imports remain out of the picture, limiting availability, further increases are expected.

The weaker pound means new vessels of TSP have increased in price. However, the lack of demand means old stocks are still available at lower levels, but once these are sold prices will move on to reflect replacement.