Gleadell Fertiliser Report
FERTILISER MARKETS by Calum Findlay, fertiliser trader.
FERTILISER MARKETS
The first Indian Urea tender of the year has finally been announced and this has become the primary focus of the market.
Tonnages are expected to be up to 1 million tonnes, and Iranian and Arab Gulf suppliers are expected to dominate the lowest tender offers with limited potential outlets for this Urea.
The Urea market has continued to drift downwards over the last 3 to 4 weeks in anticipation of this tender, but it is still unclear if floor prices have been reached.
Latin America have yet to buy and will be watching offers as if they think prices have found a level they will soon enter the market for tonnage.
In the UK, the wide spread currently between Urea and Ammonium Nitrate prices is prompting some farmers, who have already sold grain in the forward positions, to buy Urea for the 2012 season to lock in input prices.
Business has been brisk as Gleadell, through their guaranteed off take contracts with manufacturers in the Urea producing areas, can offer very attractive terms for JuneAugust delivery, and now also in the OctoberDecember positions.
GrowHow and Yara continue to hold prices in the April position focussing on the market today rather than the forward positions.
Potash prices remain stable to firm on good demand and tightening supply
Phosphate contracts have now been settled in India and the outlook remains bullish as global out turn for 2011 is expected to be lower than in 2010.
FERTILISER market information contact Calum Findlay, fertiliser trader on 01427 421244 calum.findlay@gleadell.co.uk
- Gleadell Agriculture currently has offices in Full Sutton (Yorkshire), Hemswell (Lincolnshire), Swaffham (Norfolk), Lyndon (Rutland), Warminster (Wiltshire) and Bilsborrow (Lancashire).
- Gleadell Agriculture Ltd is equally owned by Toepfer International – based in Hamburg, who trade in all agricultural products globally; and InVivo – based in Paris, who trade agricultural products on the international markets and operate major grain storage and handling facilities.
- Prices quoted are indicative only at the time of going to press and subject to location and quality.
- Gleadell Agriculture cannot accept liability arising from errors or omissions in this publication.
- mln/t = million tonnes, mt = metric tonnes, kg/hl = kilogram per hectolitre, k/mt = thousand tonnes.
