The latest analysis from Gleadell shows the fetiliser market has slowed as a result of the economic situation in the Eurozone.

UREA 

Internationally, following a lacklustre TFI conference with few buyers and sellers, the Urea market seemingly continues with few drivers as the Euro crisis and general economic news has caused inertia. Factories supplying Europe are generally comfortable until end Oct/early Nov with buyers in India/Pakistan/Brazil playing the waiting game, but knowing tenders will have to be priced by end Nov to enable execution within required time frame.

UK stocks around the country are at very low levels, with most fresh product due in the last quarter being sold earlier in the year, and few traders or merchants willing to jeopardise margins by going long in such uncertain economic conditions. However, demand will evolve at some point and, as we approach year end, it is likely demand in western Europe will clash with demand in the southern hemisphere which will result in firming prices as seen in previous years.

Summary:

Overall economic factors are causing some inertia, but the fact is fertiliser is still a very economic option and, with the UK very much driven by imported factors, a detailed assessment of options is required for the balance of the market.

AMMONIUM NITRATE

UK AN, whilst having held prices into October, are now indicating increases of another £5 to £7 for November despite slow sales, but aware of unwillingness of merchants/shippers to go long in the forward positions, and in the knowledge that demand will evolve at some point.

PK

Little change in pricing structure on phosphate and potash, with pricing reflecting in some quarters a desire by producers to reduce inventories prior to Christmas to make room for NP shipments.

SULPHUR

This market continues to be relatively tight due to lack of good quality product, which is what UK farmer demands, whether it be AMSUL or NS compounds. This is an area which should be addressed with some urgency as planting has nearly done and requirement for product is quantified.