Gleadell Fertiliser Market Report - 02/12/2011

UREA

The global Urea market and prices are stable with prices correcting downwards, and then finding strength again. This is due to suppliers beginning to feel the pressure with a build-up of product. However, yesterday in Pakistan and the US, interest was emerging showing signs of support.

AMMONIUM NITRATE

Ammonium Nitrate remains stable in Europe and the UK with market levels comparative to those seen over the past six weeks with still little demand. In France, Yara’s AN offers continue unchanged at €375/tonne delivered. Some buyers have bought AN for late December delivery despite hesitation over the pricing direction and our prediction may be that this trend will be seen in the UK over the next few weeks.

PHOSPHATE

The phosphates market this week has weakened slightly again due to the fall in US Gulf export prices following a spot sale into Central America. There is little support as we edge towards the end of the year, and predictions are that the market will continue to decline downwards with the ongoing Eurozone debt problems.

Once we enter the New Year, prices are set to firm, and this current correction makes it an excellent opportunity to take your phosphate requirement.

POTASH

This week the potash market has been very quiet. Thailand is expected to begin buying again in the coming weeks and this could fuel some last minute buying, encouraging countries such as Brazil and other southeast Asian countries to come back to the market in the first quarter.

SULPHUR

The outlook for Sulphur is a positive one, even though we have seen a slight correction this week. Some bullish traders suggest the market has hit its bottom and foresee a rebound in demand by late December/January 2012 - ahead of the lunar New Year holidays towards the end of January - and the spring fertiliser application season in the middle of the first quarter.