Wheat Report 6th September 2010

Following last week’s announcement by Yara and GrowHow that Nitrogen prices were to increase by £30/tonne for October deliveries, speculation in Europe is now intense as to where the next level of prices will be.

• All October terms that were released were for limited tonnes only as distributors allocations continue to be trimmed back in a very firm market.

• CAN supply, the preferred nitrogen in much of Europe, is extremely tight and manufacturers are watching firming international Nitrogen prices before committing themselves to any new business.

• In France/Germany further price rises of €20–30/tonne for CAN are forecast which will only add further fuel to Ammonium Nitrate prices.

• Granular Urea demand in to all areas remains strong and, on paper, there appears to be a deficit for September/October as producers are either sold out or are waiting to achieve higher prices.

• Gleadell have best quality CAN to offer, Granular Urea and Lithan AN so are well positioned to suit all your Nitrogen requirements.

• Low Phosphate stocks and firm demand from Europe, Asia and the Americas mean prices will remain firm.

• Whether the BHP Billiton offer to acquire all issued and outstanding shares of Canada’s Potash Corporation is successful or good for the Potash industry remains to be seen.