Calum Findlay Gleadell’s Fertiliser Manager, comments on fertiliser markets.
Urea
The increased volatility in the global urea market remains, due to a number of key issues. Gas restrictions prevail in Egypt, with manufacturers still unable to resolve supply for fertiliser production. Currency is producing an additional area of volatility, which is also heavily affecting prices.
As the £ continues to strengthen against the US $, this reduces the price for imported urea. Traders are now anticipating that a floor level has been found so if this is confirmed, buyers will now take positions for Q4 and prices will begin to move upwards once more.
In the UK, it is thought that only 20-25 % of the urea market has been covered, but an opportunity still exists to purchase supplies at a considerable discount to year-ago levels. Indeed, urea values are now lower than for over three years.
Ammonium Nitrate
June tonnages for UK ammonium nitrate are now exhausted as prices move higher, reflecting the £3/t increase for July terms. Imported ammonium nitrate is at £255-265/t delivered to farm, dependent on origin.
Some imported AN is being sold in the marketplace as a 32m spread, but it is important to establish the origin. Some products are definitely not capable of spreading to this distance. At this spreader width, the only reliable option is to buy UK-manufactured product.
Security
Lincolnshire Police have asked that we remind farmers of the need for security when storing fertiliser on farm. A report of the theft of fertiliser from farm premises near Boston was recorded on Thursday, 13 June 2013. Three bags of 600kg 'Origin' make ammonium nitrate (33.5%) were stolen over the past week from an insecure fertiliser store.
