Fertiliser Report from Gleadell

by Calum Findlay, fertiliser trader

"The Urea 'bull' run continues, India are buying big volumes and they will continue to do so right through until the end of the year," reports Calum Findlay, Gleadell Agriculture's fertiliser trader.

"Replacement Urea to the UK should now be priced at £520 per tonne although, through our various port agreements, Gleadell have product in store and can still offer both spot and forward terms at big discounts to this level. We also have Prilled Urea to offer and a limited amount of Bulk Prilled Urea for liquidising for August delivery.

"Nitrate prices have moved up again following the lead from the urea market above and UK manufacturers now have £400/tonne firmly in their sights. Imported AN remains a very cost-effective replacement, although shipments remain slow as product continues to be sold into more lucrative destinations. Gleadell have Ukraine 34.5% product to offer, recently tested by SCS over 24 metres, which is very price competitive.

"As land is cleared, attention will turn to autumn PK applications but, with the record prices seen today, demand will be targeted on to the more 'needy' land only. Blenders appear to want to move product as prices have been held, even though Potash prices to the UK have firmed again, but these prices will move up as demand starts to increase." Mr Findlay added.