Fertiliser Market Reports - 5th April 2013

Robert Buck, Gleadell’s fertiliser trader, comments on fertiliser markets.

After the coldest Easter weekend ever recorded, farmers have only just managed to get on their land this week as temperatures began to show some signs of warming up.

The cold weather has certainly stunted crops across the UK, so it is now imperative that plants get the nutrients they require to maximise growth in the coming weeks.

Urea

Due to this cold weather front, the urea market across Europe and the UK has slowed significantly. Granular prices have fallen again and the market saw the latest Egyptian tender closed as supplier bids did not reach anticipated levels.


Prilled urea demand in the Baltic has also eased but this short-term lack of demand does not necessarily mean a price correction is on the horizon. The US is currently negotiating new terms for Q3 and could well spark the market back into action. Buyers of urea should recognise today as being a buying opportunity.

Ammonium nitrate

With soil temperatures expected to increase next week we are anticipating higher demand and this is likely to move prices slowly higher. In the UK, importers and UK producers are expected to release new terms at £10/t higher than today’s on-farm levels.

Phosphates

Global demand for DAP/TSP has increased significantly over the past few weeks. India purchasing continues to support prices and Chinese DAP demand also shows no signs of weakening. Prices in the UK and Europe therefore remain firm and values are likely to move higher.