Gleadell Fertiliser Market Report - 17/06/2011

FERTILISER MARKETS ’ Calum Findlay, fertiliser trader

The urea market has firmed further this week as demand continues to outweigh supply.

On the supply side, the Arabian Gulf is largely sold out for July, the FSU is heavily committed, Chinese export supply remains unclear, and Egyptian availability will be greatly reduced through to August by their domestic obligations.

An Indian tender announcement, which is likely any day for up towards 2 million tonnes, will add more heat to the market. So, despite the recent correction in grain prices, Nitrogen markets will stay firm in all areas.

In Europe, Yara has raised its nitrate prices with immediate effect and GrowHow will announce new terms in the UK on Monday ’ we think circa ’345 tonne.

Omex and Chafer have limited UAN terms and are only willing to price limited tonnes for autumn tank fill and Spring deliveries.

Gleadell have Granular Urea, Lithan ammonium nitrate and Nitrogen + sulphur grades to offer ’ all at very attractive terms compared to national product.

Potash suppliers have alerted its clients that they are increasing price targets by ’10/tonne on all potash products, effective immediately.

The global phosphates bull-run continues as buyer’s sense the impact of lower than expected Chinese DAP/MAP exports.

Tight supply and healthy demand has seen prices in the US domestic market firm another $20 / short tonne in a week.