Calum Findlay, Gleadell’s Fertiliser Manager, comments on the fertiliser markets.
Urea
Replacement values for forward tonnes globally remain stable. World prices have been supported by large purchases from India, Pakistan and Turkey over the past week. In the UK and Europe, many buyers have stepped out of the market due to harvest but this does present an opportunity for some farmers. Positions are being taken for Sept/Dec as new shipments start to arrive. This gives the UK grower a chance to buy current stock at an approximate £15/t discount to forward prices.
Ammonium Nitrate
The ammonium nitrate market is very quiet both globally and in Europe as harvest is in full flow. UK product is up £3/t from 1st August and levels are holding on farm. However, there is currently very little demand. Many growers covered a percentage of their requirement early. Those yet to buy should expect both imported and UK product to continue to firm. The Oct-Dec Blue Bag Tracker is still available.
Potash
News released towards the end of last week did unsettle, for a short period at least, a very quiet potash market. Uralkali quit its joint marketing agreement with Belarus Potash Corp (BPC), which controlled 40% of the global potash exports. However, the shock from the initial announcement seems to be diminishing. MOP is priced at a 12-month low in the UK and is certainly worth considering.
Phosphate
Global phosphate demand is building as prices edge downwards on the back of the potash market unrest. In the UK, some buyers will leave purchasing until the last minute. However, blenders are competing for tonnes with sales volumes lower than normal.
Alzon 46
On-going trial work is looking very promising for this product. Alzon 46 is a high quality, efficient, 46% nitrogen product that bridges the gap between urea and ammonium nitrate. It is an environmentally friendly product that allows fewer passes by releasing stabilised nitrogen when the plant requires it.
