Fertiliser Report

"Producers in Russia and the Ukraine have raised their price ideas following an increase in gas prices which will test the market in the coming weeks," says Calum Findlay, Gleadell Agriculture’s fertiliser trader.

"The rate of tax on Chinese urea exports went up to 110% on February 1st and tonnage in bonded warehouses is insignificant, so they will not be a player in this market for the next 2-3 months.

"In the Middle East, producers are using the two arguments above to push up prices further although, February tonnage is fully committed, and they are now only offering for March shipment.

"The Imported AN and Sulphur situation remains tight and prices of ammonia have strengthened on the back of fresh demand.

"Recent deep core nitrogen samples taken suggest that soil Nitrogen indexes are one below last year so cutbacks on nitrogen applications are at the grower’s risk.

"UK nitrogen prices are now likely to remain static following last week’s new terms, although cracks have started to appear on both PK and NPK prices.

"The nationals and the blenders have reduced prices to encourage demand and, once the market takes off, a massive logistical problem will occur.

"Crops are very backward, and the rooting structure on most plants will be much undeveloped and will encourage rapid growth, so there is a genuine argument to apply an NPK as a first dressing," Mr Findlay adds.