Latest Gleadell Fetiliser report

With the Cereals Event now behind us and the larger farmers and buying groups having purchased nitrogen in the near positions, the main topic of conversation was the availability of sulphur products which are generally tight. As old positions on UK and imports unwind we now enter a replacement market going forward, with late entry buyers starting to look to buy.

GRANULAR UREA

The main drivers are the Chinese export reduction for the next six months and increased buying from Asia. Middle East producers are generally comfortable for the next 2 months although political turmoil is still an unknown factor going forward, plus increasing energy costs. We expect prices to firm steadily, and to continue to be competitive against Ammonium Nitrate.

PRILLED UREA

As industrial buyers continue to buy, the price gap has closed between Granular to around $20/25. This is mainly due to increased production worldwide of Granular product, but with no new factories on the prill front.

SULPHUR

Good quality 2-4mm Amsul is scarce, with N/S products tight due to limited caprolactum (sulphur bi-product) which is used in the production of granular products, resulting in a scarcity to date of up to 15,000mt which came to the UK in 2010. UK producers and blenders are releasing only limited quantities, as base Amsul 1-3mm increased by $25 this week.

AMMONIUM NITRATE

Limited quantities of Lithan are available as producers increase CAN output, and we only see low import levels of Bulgarian and Polish product arriving . Yara have increased prices in France by 40 Euros which is being reflected in UK at 347.00 for Aug/Sept.

PK

Prices are generally stable prior to serious demand developing.

SUMMARY

With nervousness surrounding the Euro, energy costs and political turmoil in some areas, it is generally accepted that the fertiliser market is not being driven by speculators as it was in 2008. Fundamentals remain the same as on recent projections the market is short by 15% of Nitrogen worldwide.

• 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 inHamburg, whoare one of the largest global traders of agricultural products; and InVivo – based in Paris,who are the leading provider of goods and services to their partner cooperatives and one of the largest traders of European grain.
• 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.