New Gleadell fertiliser update - Friday 2nd November 2007

GrowHow UK and Yara fertilisers are now sold out of product for the rest of this year. Pricing, yet to be posted for Jan/Feb, is expected to show yet more price rises, perhaps causing a temporary stalemate. But why?

The Severnside plant is expected to be out of service and closed by the end of January 2008 taking a possible 400,000 tonnes out of the UK nitrates supply picture.

AN

Lithuanian Imported AN is only arriving in small amounts and no other imported product is available from any of the Baltic countries or the Black Sea region.

UREA

Urea prices globally have firmed again as Indian buying is expected to continue and the US market has seen values reflect another $10 increase in the Jan/Feb position.

All blend stock prices are on a northward path, making end product pricing a "moving target" and very difficult. Currently the UK blenders will not price anything other than spot business and they are nervous about doing that!

Increased drilling areas this autumn surely mean there is a huge market still to happen, expect both logistical and supply problems in the Spring.

FERTILISER by Calum Findlay, fertiliser trader. Telephone 01427 421244 or email calum.findlay@gleadell.co.uk

If the above contact is unavailable please telephone Gleadell's trading desk on 01427 421205 or go to www.gleadell.co.uk/