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

^Urea

^{The urea market continues to strengthen on both global and domestic levels. Replacement values are now in the region of £270-275/t delivered to farm and the outlook looks firm as manufacturers continue seek higher numbers.}

After the Indian tender two weeks ago, some traders were caught out selling short and with prices firming they are now being forced into the market to cover sales. Gas problems in North Africa continue as the US demand continues, so values may rise further before stabilising. Although UK prices are firming in line with replacement they still represent excellent value compared to other nitrogen sources.

Ammonium nitrate

Ammonium nitrate demand remains flat and all European producers have seen values trade sideways now for three months. Less than 20% of the total AN market has been covered to date so deliveries are a long way behind a normal season.

This could spell trouble regarding logistics and we would recommend that buyers start to consider purchasing a percentage of their requirements now while prices are in a period of stagnation.

Phosphates

With India now entering the market for prompt shipments of DAP, levels have firmed some $20-30/t this week. More product is needed over the next eight weeks, which will maintain the firmness in the market.

Europe has also entered for spot tonnage to ensure autumn demand can be covered. In the UK, many blenders have pulled price lists for NPK/0PK and TSP/DAP, releasing new terms that reflect what is happening on the global market.