Urea

Prices have increased further this week as traders continue to cover their needs.

First thoughts were that this rally would run out of steam as short positions were covered, but there is growing opinion that these prices could be sustained for a longer period.

UK markets have reacted, with suppliers increasing prices to reflect the current replacement cost. Granular urea is now at the highs seen last season.

Ammonium Nitrate

New CF terms are yet to be released. Yara, after pulling prices on Monday to evaluate the impact of increases in the urea market, has issued new terms in Europe.

AN is now €20-21/t higher than previous levels, with 33.5%N in bulk equivalent to £238/t. The likelihood is that CF will follow with an offer that remains at a discount to Europe, continuing to offer the UK grower excellent value.

UAN Liquid

Global liquid prices are also starting to undergo similar increases.  Liquid in the UK is still trading at significant discounts to both urea and AN.