Latest Gleadell fertiliser update - 23rd November 2007

UREA

There is no end to the uptrend in Urea in sight and many markets are still very short of material for this 2008 spring season. Genuine fears of a shortage at a time of high grain prices continues to drive demand for offshore tonnage to North America and Europe.

India still need to buy more tonnes for December and with time and product running out fast in China expect this bull run to continue well in to 2008.

Buyers in the UK are still trying to buy Urea at unworkable levels and most importers have been unable to line up Urea shipments to cover the loss of production at the Terra Severnside AN facility.

Gleadell are not one of those importers, we have Granular in the UK now for November, December and January delivery.

AN

The AN market has also continued to firm with Yara raising prices in France this week to new highs, new terms due be announced in the UK will mirror this rise.

Imported AN is not arriving in any volumes as vessels go elsewhere to more lucrative destinations than the UK. The UK are on course for a supply problem in all fertiliser sectors and a logistical problem in spring 2008 is now a reality not a possibility.