Fertiliser market report - 31st August 2012
After a correction in urea prices over the past few weeks, recent tenders have elevated the market once again. Globally, the urea market is unsure on which direction to take, however, last week saw Pakistan buy 300,000mt, and today sees another Indian urea tender.
Whilst quantities are unknown, it is understood that they have over a million tonnes still to buy. The outcome could be a decider on which way the market will steer over the next few months, and many traders believe that the prices today will determine the levels to be seen until the end of the year. In Europe and the UK, activity remains low as harvest continues and buyers sit on the sidelines.
Globally, small shipments of AN are being traded into a market that is still very slow and prices have not altered significantly for many weeks. Some producers have factory turnarounds and are reporting that stocks are tightening which will help to support prices once we see the autumn market start to run.
In the UK, national prices will rise by £4 per tonne from 1st September but, compared to the price in September 2011, ammonium nitrate still remains approximately £30 lower than last year so remains an excellent buy considering where grain prices are today.
The global phosphates market has remained subdued up until now. There are signs that activity is picking up, and this is likely to increase as we enter September. Pakistan is rumoured to have stepped back into the phosphates market, as demand increases due to replanting to recoup losses following heavy monsoon rains. In Europe, the market remains slow, but there are expectations that buying activity will pick up also as we enter September. New shipment prices for September are around similar prices seen today on farm.
It has been another quiet week for the potash market, as most market participants are on summer or Ramadan holidays. Prices have remained stable with little fresh interest from Europe, however, the confidence from European market participants could be changing. Overall fears that prices could decline have kept buyers cautious this quarter.
No comments posted yet. Be the first to post a comment
Please enter your name
Please enter your comment
Your comment submitted successfully.Please wait for admin approval.
Some error on your process.Please try one more time.
The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...
The abolition of milk quotas in Europe on 1st April has resulted in a numbe...
The top 14 milk producing countries in Europe will increase their productio...
Matt Ware is the NFU's head of government and parliamentary affairs, based ...
There is a 'desperate need' to improve farmgate returns given low incomes a...
Rapid stem extension, after a slow start to spring, is likely to create spl...
The time has come for landlords to expect to see reductions in farm rents, ...
Cogent’s reputation as a source of the highest calibre sires has been enhan...
The spread of exotic and aggressive strains of a plant fungus is presenting...