Granular urea

Urea markets have seen a sharp rise in the past few days, fuelled by traders rushing to cover outstanding shorts into Europe for October, as well as ongoing demand from Turkey.

Egyptian producer, OCI, recently traded 20,000t of granular urea for October shipment at $251/t FOB into Europe, which is $63/t above the floor seen in May.

This puts replacement urea at over £250/t on farm in the UK, although with low demand, parcels are still available in some areas at a discount to this, as traders clear positions already taken.