Gleadell fertiliser report
By Calum Findlay, Gleadell Agricultures fertiliser trader.
The main highlight this week is meetings at the IFA conference in Paris, where traders and producers meet to trade and discuss potential for the next quarter and beyond, says Calum Findlay, Gleadell Agricultures fertiliser trader.
As stated last week, it is becoming very apparent that stocks of Ammonium Nitrate are at a very low level and stocks going in to the new season will be tight in all areas. This has led Yara to release terms in France at a price which relates to UK AN at 195/200 tonne delivered for June, increasing by 4/tonne for July.
Granular Urea and Prilled Urea prices are very similar and, after a five month drift, it is thought that FOB price around $235/240 is somewhere near the bottom as demand starts to pick up in north west Europe, Brazil, Pakistan and India reflecting prices in the UK of circa 220.00 delivered.
Compared to last year it is likely Granular Urea will be a little more competitive as, in hindsight, it has been agreed that UK producers started the market at too low a level and struggled at the end of the season to supply the grassland market in an orderly way.
The Triple Super Phosphate (TSP) market has started although at sub 300.00 is difficult to find as FOB prices and week currency now reflect 315/320 but, with such large swings in currency :$, this is changing on very regular basis, Mr Findlay adds.
3) mln/t = million tonnes, mt = metric tonnes, kg/hl = kilogram per hectolitre, k/mt = thousand tonnes.
