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

As the good weather continues and crops race through their growth stages, demand for all products, particularly nitrogen, is still evident for spot delivery given the requirement for immediate application.

The UK market still lags behind others in the rest of Europe, with many countries already seeing a rebound for nitrogen domestically. This is usually an indication for the UK that prices may have found the floor and does present a good opportunity to take product both spot and forward.

Urea

Current prices for spot delivery remain very competitive, with urea currently offering an attractive discount to ammonium nitrate by nearly £50/t on a cost-per-unit basis. The global market has seen values on granular urea trading around $350 FOB Egypt. For some traders this level is seen as the trigger point to take positions.

Once this happens urea values could potentially bounce back. Growers should seriously consider covering a percentage of their forward requirements, taking advantage of the forward grain values at the same time. This week saw granular activity in Italy and France strengthen significantly with rumoured quantities of 80,000t being booked.

AN

Ammonium nitrate in the UK remains below the replacement prices seen in the rest of Europe and suppliers compete for spot business. There are ample stocks of ammonium nitrate - many importers are comfortable and are not yet seeking to take any further positions for May/June. UK nitrate prices were rolled across from April with little evidence that the price will change, so 34.5% Nitram presents excellent quality and value for money.

Phosphates

Trade has been active In Europe over the past 10 days with imported TSP prices remaining steady to firm. Autumn buying has started  - once UK growers start buying in volume we would not be surprised to see prices firm further.

Sulphur

Strong UK demand for NS grades is still evident and provides great value for money compared to straight nitrogen products.